Kuda Bank Overdraft: Everything You Need to Know

Kuda Bank is a leading microfinance bank at the forefront of the banking industry in Nigeria. It is among the first-generation banks to fully offer online banking services to its customers and till today the bank still has one of the best banking services among other banks in Nigeria.

Kuda Bank has a very wide customer base and presently has more than 4 million users nationwide. Nigerians started embracing the use of Kuda around 2020 and since then its customers have been increasing. The reason for this is not far-fetched. The bank provides many amazing services and as Nigerians, what do you expect? We love to enjoy good things at no cost or stress. Today, it is widely used by individuals and business owners.

One of the many beautiful services provided by Kuda is the development of a user-friendly bank app for its users. This bank app is very easy to navigate and you do not need to be tech-savvy before you can use it. Also, Kuda Bank provides free banking services to its customers. This is what I mean — Unlike other banks, you can easily transfer or receive money from bank to bank without incurring any charges on your transaction. Isn’t that beautiful? In fact, the bank is known to be the first in Nigeria to start offering free transaction service to its customers and as a result, it earned the name “Bank of the Free”.

Kuda bank customers after opening an account also get their physical debit card delivered to their doorstep free of charge. They are also able to make payments of utility bills at no cost.

Overview of Kuda Overdraft

An important feature that was recently introduced by Kuda Bank on its bank app that is very attractive to its customers is ‘Overdraft’ which is a form of loan. The overdraft is similar to a short-term or medium-term loan accessible to users of Kuda Bank.

This overdraft can be called a ‘life-line loan’ because it will always save you from embarrassment when you need to cover urgent expenses. If you are not using Kuda Bank today, you should run to open an account with them to be able to enjoy all these benefits.

How to Open a Kuda Bank Account

Opening a Kuda Bank Account can be done easily in the comfort of your home. All the processes are done online. Follow the procedure below to create your own account:

• Download and install the Kuda Bank app from Play Store if you are an Android phone user or from Play Store if you are a user of iPhone or iOS
• Afterwards, open the bank app and click on create account
• To create an account with Kuda you will need to provide some important details such as your BVN, contact phone number, active email address, the full name of the account registrant.
• After providing all the required information, an account number will be automatically generated for you
• You will also need to create a four-digit pin that you will for your online banking on the app.

Requirements to Obtain Loan and Overdraft from Kuda

The following are the requirements for obtaining loan and overdraft from Kuda app

• You need to be an active user of Kuda bank app
• You actively use the account to make payments and transactions
• You must have a good credit record with Kuda

Once you meet the above requirements, you will be automatically qualified for an overdraft of up to ₦50,000

How to Apply for Kuda Overdraft

• Open your Kuda Bank app and go to your account dashboard
• You will see ‘Borrow’ option in the dashboard, click on it to proceed
• If you are eligible for an overdraft, the ‘Get Overdraft’ option will be displayed, then click on it
• Afterwards, adjust any amount you wish to borrow up to ₦50,000 and click on finish.
• The money will be credited to your account immediately and available for spending.

How Much Loan or Overdraft Can I Get from Kuda?

There is no maximum limit to the amount you can get from Kuda. However, the minimum threshold is ₦50,000. The maximum amount you can borrow depends on the transaction volume of your bank account. Also, as you continue to maintain a good credit or repayment record, the amount available to you as overdraft will keep increasing.

What is the Interest Rate that Kuda Charges on Overdraft?

Kuda will charge an interest rate of 0.3% per day on loans or overdraft borrowed. This interest rate keeps accumulating until the customer is able to pay back the loan.

How Do I pay back my Kuda Overdraft?

The repayment of Kuda overdraft is automated. The money will be automatically paid back once you credit your account and the accumulated interest rate will also be removed at the same time.

What will Happen If I Don’t Pay back Kuda Overdraft?

If you do not pay back after a very long time and kuda bank notices this, they will report you to the Central Bank of Nigeria (CBN). The bank might even ask CBN to direct any other bank where you have to pay the overdraft you owe kuda.

How Do I Contact Kuda Bank?

To contact Kuda Bank is very easy. They have one of the best customer support service. Feel free to chat with them on the bank app or send email your complaints to help@kuda.com.

Their head office is also located in Ikeja, Lagos State.

Conclusion

Kuda Bank with all its associated banking benefits has maintained its position as a forefront Microfinance bank in Nigeria. The Kuda Overdraft is a form of quick loan offered by Kuda Bank to its eligible users. The overdraft is friendly and available at a low-interest rate. But you should make sure you will be able to pay back on time before applying for the overdraft so that your debt will not keep accumulating.