How To Qualify For Kuda Overdraft

Kuda has steadily grown to become one of the leading mobile banks in Nigeria. They offer a range of services including savings, investments, bill payments, and loans.

One of their most popular services is the Kuda Overdraft.

An overdraft is a financial tool that allows a customer to spend more than their account balance up to a certain limit. It provides a safety net for unexpected expenses or emergencies.

In this article, we will explore how to qualify for a Kuda Overdraft.

Have an active Kuda account

To apply for an overdraft, you must have an active Kuda account. You can download the Kuda app from the Google Play Store or the Apple App Store.

Creating an account is easy and can be done within a few minutes. You will need to provide your personal details such as your name, date of birth, email address, and phone number.

Once your account is verified, you can start using it immediately.

Meet the eligibility criteria

Kuda Overdraft is only available to eligible customers. To be eligible, you must meet the following criteria:

• You must have an active and verified Kuda account.

• You must have a consistent source of income.

• You must have a good credit history.

• You must have made at least six transactions on your Kuda account.

• Your account must not have any outstanding loans or overdrafts.

Apply for an overdraft

To apply for an overdraft, log in to your Kuda account and navigate to the Overdrafts tab.

You will be required to provide some basic information such as the amount you need and the purpose of the overdraft.

Kuda will then review your application and notify you if you are approved or not.

Understand the terms and conditions

Before applying for an overdraft, it’s essential to understand the terms and conditions.

Kuda Overdraft has a daily interest rate of 0.15%, which means you will be charged 0.15% of the total amount you borrow each day.

For example, if you borrow ₦10,000, you will be charged ₦15 per day. It’s important to also note that the overdraft has a maximum tenor of 30 days.

This means you must repay the overdraft within 30 days of borrowing.

Manage your account well

After receiving the overdraft, it’s important to manage your account well. Make sure you stick to the repayment schedule and pay the required amount on time.

Late payments may result in extra charges and may also affect your credit score. It’s also advisable not to borrow more than you can repay.

Overborrowing can lead to a debt trap that can be difficult to get out of.