Kuda Overdraft – How to borrow money on Kuda

by Johnson Daniel
Published: Last Updated on

The advancement of technology has seen us do things from the comfort of our homes. One of the things we can do from the comfort of our home is taking loans. Gone are the days when you need to line up in a queue, stressing yourself out to take a queue from one bank or the other as in our world today, we do it with our smartphones in our comfort zones.

There are currently numerous platforms that offer credit loans to individuals, from small to large credit loans. We’ve looked at quite a few and how we can get credit loans from them. These platforms include Branch, OKash, Palmcredit, ALAT, Quickteller, even from 9mobile and so on. Some of these platforms that offer loans do so without collecting collaterals, in fact, almost all if not all don’t collect credit loans.

Here, I want to introduce Kuda overdraft to you because it comes at a low daily interest rate of 0.3% (of the amount you borrow). You should be quite familiar with Kuda bank, the free mobile-only bank fully licensed by the Central Bank of Nigeria

What is an overdraft?

  • It’s a short-term loan to help you keep your life running smoothly.

  • If your Spend account balance is ever too low for comfort, you can always take some money from your Borrow account to cover your expenses and pay it back whenever you get paid.

Do I need to fill a form or provide collateral?

  • No, you don’t need to fill a form or provide collateral to get an overdraft.

How much overdraft can I take?

  • The app will show the maximum overdraft you can take.

Will I pay a fee to get an overdraft?

  • No, but if they need to run a credit check to be sure that you qualify for an overdraft they may charge you a fee for that service.

Will l pay interest on my overdraft?

  • Yes, they’ll charge you a daily interest of 0.3% of the amount you borrow till you pay back the entire overdraft.

  • Interest counts if you do not pay back before midnight on the day you borrow.

What happens if I don’t spend what I borrow?

  • If you don’t spend your overdraft or you spend just a part of it, they’ll move the money back into your Borrow account.

How do I pay back an overdraft?

  • Overdraft repayments are made automatically from your Spend account.

  • If you don’t have enough money in your Spend account to repay the entire overdraft when it’s due, repayment will be made in bits every time money is added to your account until everything you owe has been repaid.

How to take a Kuda overdraft

  • Open Kuda and tap or swipe to your Borrow account.

  • Tap Borrow; Get Your Overdraft.

  • Tap Next.

  • Type in the amount you want to borrow then tap Done.

  • Confirm with your transaction PIN, fingerprint or Face ID.

  • Tap Okay and you can spend from your account.

For those of you who prefer to see a video tutorial on how you can take a Kuda Overdraft, here’s a video on that.

If by any chance you’re reading about this and you do not have an account with Kuda, you can always open one within some minutes. Here are some reasons why you should bank with Kuda:

  • No card maintenance or account maintenance fees
  • 50 free transfers every month (10 Naira each for extra transfers)
  • No minimum balance
  • Free withdrawals at over 3,000 ATMs across Nigeria
  • Request, activate, block and unblock your debit card on the app
  • Grow your savings automatically when you spend
  • Up to 25% interest on fixed savings
  • Free debit and credit alerts
  • Responsive customer support
  • Simple tools for managing your money better

You can always see this article to know more about Kuda Bank and what it has to offer. Now, here’s how you can open a Kuda account:

  • Download the latest version of Kuda on Google Play or the App Store.
  • (Sign up and use this as your referral code – TAJISORK) add your BVN.

That’s all. As soon as you get an account with them, you need to meet up with the requirements to be able to get an overdraft with them.

Difference between Kuda Overdraft and a loan

I’d also like to let you know that there’s overdraft is different from a loan. How? When you take an overdraft, you are allowed to spend above your account balance and get charged interest on the amount you take a while for loan, your account is credited with the money and interests starts adding up immediately.

Why should you choose Kuda Overdraft instead of others? Well, the interest rate is pretty low with a daily interest of 0.3% of the amount you borrow till you pay back the entire overdraft. Interest counts if you do not pay back before midnight on the day you borrow.

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