Kuda doesn’t openly give loans directly to everyone on demand like other loan apps like FairMoney, OKash, Palmcredit, Easemoni, Carbon, and so on.
Their personal loan is highly conditional and it’s not suitable for emergency loans while their business loan can give up to N5,000,000 to qualification businesses.
Also, their business loans are strictly for businesses within Lagos state and such businesses must have good turn over to be eligible for any of their packages.
Their personal credit is known as overdraft. This overdraft is strictly for personal Kuda accounts that have a good financial flow.
The overdraft only allows qualified users to use more than the amount they have in their account balance and repay later.
In this article, we will cover all the vital information about Kuda credit and how you can access their loans and borrow from them using their app.
Does Kuda Give Loans?
Yes, Kuda gives loans but not in the way other digital loan providers do. Kuda gives both personal loans through their overdraft credit service and business loans to only SMEs businesses.
So Kuda does not operate like typical Nigerian loan apps where you just do credit check, apply for personal loan and receive it instantly.
The Kuda credit system is more conditional than most lenders out there.
Unlike other lending apps that will just run a credit check on your profile and offer you a loan, Kuda will need to watch your transaction history, inflow, outflow and financial behaviour over a period of time before granting you access to their credit.
So for some users, they can use Kuda for months and never receive a personal loan offer on their app, but active users with frequent transactions on the Kuda app may eventually unlock access to their overdraft credit service.
What Type of Loan Does Kuda Give
Kuda mainly gives overdraft-style credit for personal loans and business loans worth up to N5,000,000.
The overdraft for personal lending allows qualified users to spend more than their balance while the business loans have more requirements.
So Kuda credit is not like the traditional personal loan where you just click on “apply” and wait for instant disbursement.
Important Things to Know About Kuda Loans
So before you proceed to taking a loan from Kuda, make sure you understand the following:
- Kuda only offers Overdraft for personal accounts and not business account
- Kuda offers Working Capital Loans for businesses
- There’s an option for Asset Financing for businesses
- Kuda also offers Purchase Order Financing for businesses
- Kuda overdraft limits are based on your account activity, credit history, and transaction volume
- Overdraft must be repaid within 30 days
- Overdraft is auto-debited from Kuda account
- Overdraft eligibility depends on your account activity.
- Business loan application is via Kuda Business app
- Eligibility for loans increases with active account usage
- Purchase Order Financing advances 80-90% of order value
- Asset Financing uses the asset as collateral
- Official website: https://www.kuda.com/
Requirements for Kuda Overdraft
For an overdraft, the user must ensure to meet up with the following eligibility criteria:
- Active Kuda personal account
- Verified BVN on your Kuda account
- Regular money inflows into your Kuda account
- Consistent account activity and transactions
- Good credit history checked via Credit Bureau
- Must be 18+ years old
- Nigerian resident
- Valid NIN linked to your account
- No existing unpaid Kuda overdraft
Note: even when you meet all these requirements, eligibility for their overdraft will still be determined by the Kuda’s credit scoring algorithm.
Summary of Kuda Overdraft for Personal Credit
The table below summarises everything you need to know about Kuda overdraft at a glance:
| Feature | What to Know |
|---|---|
| Loan Type | Overdraft |
| How It Works | Allows you to spend above your account balance |
| Access Method | Kuda app |
| Application Process | Available via the “Borrow” section in the Kuda app |
| Eligibility Basis | Active account with good financial usage history |
| Loan Amount | Varies per account |
| Interest Rate | 0.23% – 0.8% per day |
| Interest Type | Daily |
| Repayment Period | 30 days + extra 15-day grace period |
| Repayment Method | Automatic deduction from account balance |
| Renewal | Overdraft refreshes automatically |
| Disbursement | Instant access to funds |
| Collateral | Not required |
| Paperwork | None |
| Suitable for | Short-term loans |
| Penalty for Default | Overdraft gets paused |
Eligibility and Requirements for Kuda Business Loan
For any business to be eligible, such business must meet the following conditions, eligibility and requirements:
- Business must operate within Lagos State
- Business must have ₦1M – ₦100M monthly turnover
- Business must be at least 2 years old
- Business must be legally registered with CAC
- Business account will need 6+ months history
- Personal and business finances must be separate
Summary of Kuda Business Loan
The table below summarises everything you need to know about the Kuda capital loans, invoice financing and purchase order financing (all under their business loan) at a glance:
| Feature | What to Know |
|---|---|
| Loan Types | Working Capital Loans, Invoice Financing, Purchase Order Financing |
| Loan Amount | ₦1M – ₦5M+ |
| Collateral | Assets are used as collateral |
| Approval Time | Within few days |
| Repayment Structure | Flexible options are available |
| Interest | No publicly fixed interest rate |
| Application | On the Kuda Business app |
| Disbursement | Based on verified invoices or confirmed purchase orders |
| Loan Tenure | Flexible options are available |
How to Borrow Money from Kuda Bank
If you are applying for the Kuda overdraft (personal loan), follow these steps:
- Download and install the Kuda Peraonal Account
- Ensure you have used it for months and have done enough transactions
- Tap on “Borrow” from the home page
- Select “Overdraft”
- Check your eligible amount
- If you are qualified, tap “Get Overdraft”
- Read and accept the terms to proceed
If you are applying for business loan, follow these steps:
- Download and install the Kuda Business app
- Create a business account
- Set up Full Business account and submit CAC documents and TIN
- Complete facial verification and business address verification
- Ensure you use account actively and consistently for 6+ months
- Tap on “Borrow” from the home page
- Choose the loan option that is suitable for your business
- Upload all the required business verification documents
- Read the terms and conditions and accept them if you are okay with them
- Submit application and wait for review
- You’ll receive feedback within few hours or days
Best Alternatives to Kuda Loan
There are other loan-focused lending platforms that will serve you better for both personal and business loans. Some of them include:
- Branch
- FairMoney
- Carbon
- Palmcredit
- Aella Credit
- Easemoni
- Newcredit
- Opay – OKash
- Renmoney
- LCredit
See all the top 20 loan apps that you can consider instead of Kuda loans.
See Also:
FAQs
Which Industries Are Qualified for Kuda Business loan?
Qualified Industries for business loan include but not limited to:
- Accommodation and Food Service Activities
- Hotels and accommodation services
- Restaurants and food services
- Cafes and bars
- Wholesale Trade (except motor vehicles)
- Retail Trade (stores, mini-marts, convenience stores)
- Information and Communication
- Agriculture (including Forestry and Fishing)
- Administrative and Support Service Activities
- Manufacturing (including Food, beverages, textiles, and apparel)
- Transport and Logistics
- Service Providers
Conclusion
Although Kuda doesn’t directly give quick access to their loans, they still give personal credit (known as Overdraft) and business loans to businesses in Lagos.
To access their credit services, you must be an active user on their app. You can access their Overdraft through the Kuda Personal account and then the business loans via the Kuda Business account.
