Welcome, today we’re going to wall you through Kuda Bank Loan: How to Apply for Loan and Borrow Money From Kuda Bank App.
Kuda Bank is a leading digital bank in Nigeria that offers loans alongside its savings accounts and other financial services. Kuda provides access to quick, short-term personal loans directly within its mobile app.
This comprehensive guide explains everything about taking a loan with Kuda Bank.
It covers loan types and features, interest rates, eligibility requirements, documents required, repayment structure, and step-by-step application instructions.
About Kuda Bank
Kuda Bank is a digital-only bank founded in 2019 and headquartered in Lagos, Nigeria. It is licensed and regulated by the Central Bank of Nigeria (CBN).
Key products and services offered by Kuda Bank include:
- Savings accounts
- Current accounts
- Fixed deposits
- Debit cards
- Loans
- Transfers and payments
As of 2022, Kuda has over 4 million customers and processes over $2 billion annually in transaction value.
Kuda Bank Loan Options
Kuda Bank provides 2 main loan offerings:
- Quick Loans – Short duration loans up to ₦500,000 with flexible 3-12 month repayment period
- Device Loans – Longer 12-24 month loans for purchasing gadgets like smartphones, laptops etc.
Features of Kuda Bank Loans
Some features of taking a personal loan with Kuda Bank include:
- Loans up to ₦5 million
- Competitive interest rates
- Customizable loan tenor
- No paperwork or collateral
- Instant disbursal to Kuda account
- Auto-payments from account
Kuda Loan Requirements
To qualify for a Kuda loan, you need to:
- Be at least 21 years old
- Have an active Kuda mobile account
- Have regular account income flow
- Provide accurate personal information
- Have a good credit score and repayment behavior
How To Apply For Kuda Bank Loan
Follow this easy step-by-step loan application process using the Kuda mobile app:
- Download app – Get Kuda app from PlayStore or AppStore
- Open account – Register for a Kuda savings account
- Fund account – Make sure to fund your new account
- Engage actively – Use account and app frequently
- Request loan – Tap ‘Loans’, select type and enter amount
- Provide details – Fill in additional info required
- Accept terms – Carefully read T&Cs before accepting
- Get approved – Await loan approval decision
- Get loan amount – Disbursed instantly to account if approved
Repaying Kuda Bank Loan
To repay your Kuda loan:
- Auto-deducted EMI from your Kuda account
- Total EMI includes principal + interest amount
- Option for early repayment without charges
- Term completes once full amount repaid
Tips To Get Kuda Loan Approval
Follow these tips to increase chances of loan approval from Kuda:
- Actively use Kuda account for 6+ months
- Set up regular income/deposit flow into account
- Maintain a good credit score and repayment history
- Provide accurate personal and contact information
- Start with smaller loan amount first time
Factors Influencing Kuda Loan Eligibility and Interest Rate
Kuda Bank assesses multiple factors to determine your loan eligibility as well as the interest rate you will get. Major aspects evaluated include:
- Income and account activity: Your account inflow and deposits indicate your repayment capacity. Higher stable monthly income results in higher loan eligibility.
- Existing obligations and exposure: Total loans outstanding with other lenders impacts additional loan eligibility with Kuda.
- Credit history and behavior: Past repayment track record is evaluated via credit bureaus to determine default risk and rates.
- Customer profile: Employment stability, qualification, residence and other KYC details help determine profile risk.
FAQs on Kuda Bank Loan: How to Apply for Loan and Borrow Money From Kuda Bank App
Here are some answered FAQs on Kuda Bank Loan: How to Apply for Loan and Borrow Money From Kuda Bank App.
Does Kuda reject loan applications?
Yes, Kuda reserves the right to reject any loan application if ELIGIBILITY criteria are not adequately met.
Can I apply for a loan using browser?
No, currently you can only apply for Kuda loans using Kuda’s mobile apps for Android and iOS phones.
What if my phone number changes after taking loan?
Immediately update your new phone number in your Kuda profile to keep receiving SMS notifications and OTPs.
How much processing fee does Kuda charge for loans?
Kuda does NOT currently charge any loan processing fees or charges. There may be costs imposed in future.
Is there any foreclosure or prepayment penalty on Kuda loans?
No. You can repay your entire Kuda loan amount ahead of schedule without incurring any foreclosure or prepayment penalties.
What if I want to increase my loan amount after approval?
Unfortunately further changes cannot be made to already approved loans. You must apply afresh for a top-up loan if required.
What details do I need to provide for e-mandate registration?
For auto-repayment e-mandate, submit your core banking details – account number, IFS code, PAN, password etc.
Does Kuda report defaulters to credit bureaus?
Yes, consistent delays or defaults in repayments can result in adverse reporting to your CBN credit profile.
FAQs About Kuda Bank Loans
What is the maximum loan amount for new customers?
New Kuda customers can get loans up to ₦250,000 based on eligibility criteria.
How soon can I take another loan after repaying one?
You can apply for another Kuda loan after just 1 month of fully repaying an earlier loan.
Is there any processing fee for Kuda loans?
No, Kuda Bank does not currently charge any processing fees for personal loans.
What documents do I need to provide?
You avoid paperwork. Just submit your personal, contact and income details within the Kuda app.
Can I change my loan tenor after getting the loan?
No, you cannot increase or reduce loan duration after getting the approved loan disbursal.
Is there any collateral or security needed?
No, Kuda offers unsecured loans without needing any assets or guarantors.
Does Kuda inform credit bureaus about loans?
Yes, CBN requires Kuda to share customer loan data with credit bureaus.
Can I get a loan without BVN?
BVN verification is mandatory to take any type of loan with Kuda Bank.
How long does Kuda loan approval take?
Loan approval is typically completed within 24 hours after submitting full details.
What if I miss my EMI deduction?
You get 15 days grace period. After that, penalties apply and credit score gets impacted.
Can I pay off the entire loan amount in one go?
Yes, Kuda allows you to repay your total loan outstanding anytime without penalties.
What is the turnaround time for loan disbursal?
Once approved, loan amount gets instantly credited into your Kuda Bank account.
Can I apply for multiple loans together?
No, currently you can only have one active loan with Kuda Bank at a time before repaying fully.
Conclusion
Kuda Bank offers an easy way to access personal loans digitally through its mobile app.
Loans get approved and disbursed quickly into your Kuda account if eligible.
Follow the steps and tips given above, repay responsibly on time, and take loans up to ₦5 million based on your profile.
After reading this article, I hope you know about Kuda Bank Loan: How to Apply for Loan and Borrow Money From Kuda Bank App. Read on how to sign up on kuda Bank.
