Kuda Bank Overdraft (All You need to know)

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Have you been hearing of the Kuda Bank Overdraft and you’re kind of wondering what the Kuda Bank Overdraft is and how it works? If that is what you’re looking for, then you’re in the right place.

In this article, you’ll learn everything about kuda bank and how you can leverage the opportunity available in kuda bank overdraft.

Kuda Bank Overdraft allows you to take a quick loan without having to use any of your assets as collateral. In case you’re looking for a loan without collateral, you can read our post where we talk about the different lists of mobile apps that offer loans without collateral. 

Before I proceed, let me explain what a Kuda Bank Overdraft is.

What Is Kuda Bank Overdraft?

Kuda Bank Overdraft is a short term loan to help you in keeping your financial life moving smoothly. 

The overdraft allows you to borrow money from your Kuda Bank Mobile App to cover your expenses.

The Kuda Bank Overdraft is very good for salary earners or people who use the app as their main bank. 

If you’re a Kuda Bank App regular user, the app will evaluate your account using machine learning technology to know how much you’re eligible to get on your overdraft balance which you can move automatically to your main balance whenever you need urgent cash to solve any financial problems

Also Read: How to apply for CBN graduate loan

How To Apply For Kuda Bank Overdraft

  • Open the Kuda Bank Mobile App and tap or swipe to your Borrow account.
  • Click Borrow.
  • Click Get Your Overdraft.
  • Click Next.
  • Type in the amount you want to borrow then click on  Done.
  • Confirm with your transaction PIN, fingerprint or Face ID.
  • Click Okay and you can spend from your account.

How To Get Kuda Bank Overdraft?

Kuda Bank Overdraft is automatically placed by the app in the overdraft balance. This process does not need any configuration from you. As I have mentioned above, the Kuda Bank App creates the overdraft for your account based on the algorithm it gets through machine learning technology by evaluating your account and determining how much you’re eligible to get on the overdraft balance.

If you’ve defaulted on any loan before, you will always see your overdraft balance showing N0.0 all the time.

To be qualified for the Kuda Bank Overdraft, You Must actively use the Kuda Bank Mobile App as your main bank account or better still, make sure you’re actively using the Kuda Bank Mobile App for all of your transactions.

When your account has not passed through the verification process of Kuda Bank which has to do with adding your BVN and facial verification where you have to record a video of yourself moving your head in a clockwise direction, the bank will not activate the overdraft feature on your account.

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How Much Is The Maximum Overdraft You Can Get?

Kuda Bank Overdraft does not have a maximum amount. The amount you see on your overdraft balance depends on the inflow and outflow of money in your account. The Kuda Bank App will now use an Ai tech to evaluate how much that will be credited into your overdraft balance.

Let say, for example, if you’re always having a regular income of over 50,000 Naira monthly, the app will evaluate your inflow and determine the percentage of how much you can get in your overdraft balance.

How To Pay Back Kuda Overdraft?

Paying back the Kuda Bank Overdraft is very simple. For you to pay back your overdraft balance, all you need to do is to fund your Kuda Bank Account. Kuda Bank App will automatically deduct the money from your main balance to clear the overdraft balance. 

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 Much Is The Fee For Kuda Overdraft?

Kuda Bank Overdraft has no fee or any other cost when applying for an overdraft. According to kuda bank, they may charge some fees if you’re applying for an overdraft. This fee will be charged for running a credit check to ensure that you’re qualified to get an overdraft.

What Is The Interest Rate For Kuda Bank Overdraft

Kuda Bank Overdraft comes with an interest rate of 0.3% daily on any amount you borrow. This interest of 0.3% will keep accumulating until when you pay back the overdraft.

The interest count of Kuda Bank Overdraft will start counting after 24 hours of you borrowing the money. For any reason, if you were able to pay back on the same day you collected the overdraft, you’ll not be charged 0.3%.

Why You Should Use Kuda Bank Overdraft

According to Kuda Bank, around the 4th of June,2021. The bank recorded over 90,000 users enrolled for the Kuda Bank Overdraft. The bank is out there to help people get loans easily without having to pass through the stress of paper works just like the traditional banks we see every day.

Kuda Bank is the best app as of 2021 for getting quick loans without collateral because they will never call you to embarrass you or call your contacts to let them know that you are defaulting on any loan.

The interest rate will only keep accumulating daily with a 0.3% daily until you pay back the loan. The beautiful thing about how Kuda Bank Overdraft works, you can pay back the loan at your own pace and convenience without any form of pressure

Conclusion

If you have any questions regarding Kuda Bank Overdraft, you can drop them in the comment section. We’ll reply to them as soon as we can.

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