Kuda Bank is a neobank operating with a microfinance bank (MFB) license in Nigeria. The bank pronounced itself as "bank of free" because it's offering 25 free transfers to individual account holders per month.
In addition to the free transfers, Kuda Bank is offering cashbacks on payment made through the app. For instance, if you purchase airtime worth N200, you will get N50 cashbacks. The amount of cash back you get varies per amount of the transaction.
Well, that's not where we're going today. Today, we'll be diving into the types of loans Kuda is offering to its customers. Kuda Bank offers overdraft, salary advance and personal loan to any individual using the app for day-to-day transactions.
Types of Kuda Bank Loans
1. Overdraft
Kuda Bank's Overdraft is a loan offer that allows you to spend beyond your available balance. For instance, if you're eligible to get N20,000 overdraft, you will spend up to N20,000 starting from N0 on your account.
The moment you start spending the overdraft, your balance will be reading minus as shown in the image above.
To be eligible for Kuda overdraft, you will need to keep using the bank app for your daily transactions including payment of bills, buying of airtime and data. Of course, you should also maintain a good credit score.
2. Salary Advance
Kuda Bank's Salary Advance is a loan offer that allows any individual using the Kuda Bank account as their salary account. The loan amount is calculated based on user's monthly salary and wages.
To be eligible for this loan, you must be using your Kuda account to receive your salary and have a record of at least three months. Then, you must have a company ID card and also submit your company registration code for confirmation.
Once all these requirements are met, the system will generate a loan offer for you base on your monthly salary. The repayment is automatic and will be deducted when your next salary is received.
3. Personal Loan
The personal loan on Kuda App is just like normal loans almost anyone can obtain from any available online lenders in Nigeria. The loan come with low interest rate, and no collateral or paperwork is involved.
The loan amount usually starts from N5,000 and repayment is always scheduled to 14 days at first. However, when your repayment is made, you can get higher amount.
Of course, you will need to maintain a good credit score and have a good transactions history on your phone. Kuda Bank will need to access your SMS, Call Logs, and Calendar to further rate your credit worthiness.
Conclusion
Kuda Bank offers overdraft, salary advance and personal loan to customers. These loans requirements differ: the overdraft requires users to maintain good and steady transactions history on the Kuda app, the salary advance requires users to own a salary account on Kuda, and the personal loan requires users to maintain a good credit score overall.
If you have further questions regarding any of these loans, feel free to ask in the comments section and I will reply as soon as possible.
