Everything You Need To Know About The New Kuda Overdraft

Introduction

Have you ever needed money urgently but didn’t have enough in your account? You’re not alone. With prices going up every day and the possibility of unexpected bills like hospital fees or car repairs, it’s easy to run out of money.

That’s where an overdraft can help you. It gives you quick access to money straight from your bank when you don’t have enough.

The new Kuda Overdraft comes with clearer terms, a monthly billing statement, minimum monthly repayment, and the same low interest rate to make borrowing easier for you.

Overdraft or loan: Which one should you choose?

A loan is money a bank or lender gives you, which you must pay back later, usually with interest. Sometimes, you need to use something valuable, like your land or car, as collateral to collect the loan.

An overdraft lets you spend more than you have in your account. It’s like a small, short-term loan you get directly from your bank to sort out urgent needs.

With Kuda Overdraft, you can borrow instantly without any collateral. If Kuda approves ₦50,000 for you, that means you can spend that ₦50,000 plus whatever money is already in your account.

Differences between overdraft and traditional loans

About the new Kuda Overdraft

The old Kuda Overdraft needed to be repaid at once. With the new Overdraft, you only need to repay at least 20% of what you owe with interest every 30 days instead of repaying it all at once. You also get 15 days of grace to repay in case you need more time.

To help you stay on track with repayments, Kuda sends reminders and clear statements, so you always know what to repay and when.

How the new Kuda Overdraft works

Monthly billing and statements

You’ll get a billing statement 30 days after you use Overdraft. The statement shows how much you used, what you owe, the minimum amount to repay, and the repayment date.

You’ll get your billing statement on the same date every month. For example, if you use your overdraft on February 5, you’ll get a billing statement on March 5.

You’ll have two weeks to repay the minimum amount, and you can check your billing statement any time on the Kuda app.

Repaying your overdraft

You have 30 days to repay. Any money you add to your Spend account goes first to repay what you owe. If you can’t repay everything you borrowed, repay the minimum amount due to keep your overdraft active.

The minimum monthly repayment is 20% of what you borrowed, plus daily interest.

Once your Spend account goes negative, repayments happen automatically until you clear the minimum amount plus interest. You’ll also get reminders to help you stay updated.

Fees and interest

You’ll pay a daily interest of 0.3% to 0.8% on the amount you borrow until you repay all of it.

Managing your overdraft limit

You can check your limit, see how much you have left, and see your overdraft transactions on the Kuda app. You can also increase or reduce your overdraft limit any time or switch your overdraft on or off whenever you want.

How to activate Overdraft

If you’re eligible for an overdraft, we’ll send you an email and a notification on your Kuda app. If you choose to opt in to Overdraft, we’ll run a credit check to determine how much overdraft we can offer you.

Follow the steps below to activate your overdraft:

1. Tap the banner on your Kuda app prompting you to take an overdraft.

2. Tap Take an Overdraft and we’ll run a quick credit check to confirm your eligibility.

3. If you’re eligible, we’ll make you an offer on your Kuda app.

4. If you accept our offer, you’ll be able to set your overdraft limit.

5. After setting your limit, tap Done, then confirm with your transaction PIN, fingerprint, or Face ID, and tap Okay.

The benefits of Kuda Overdraft

1. Quick and easy access to cash.

When you’re low on funds, Kuda Overdraft gives you the chance to borrow money instantly. No forms to fill, no collateral. Just meet the requirements, sign in, and your overdraft will show up if you’re eligible.

2. No application fees or hidden charges.

Kuda doesn’t charge you to get an overdraft. There are no hidden fees, so you know exactly what to expect.

3. No paperwork, no stress.

You don’t need collateral, a guarantor, or any extra documents to get an overdraft. If you’ve verified your Kuda account and use it regularly, we’ll do the rest.

4. A flexible repayment plan.

You only need to pay 20% of what you borrowed, plus interest, every month to stay in good standing

How to manage your Kuda Overdraft

• Don’t spend more than you need to. Overdraft is for essentials.
• Decide how much you’ll spend each week or month, and stick to it. This helps you avoid overspending and stay within your overdraft limit.
• Repay what you borrow as soon as you can. The sooner you repay, the less interest you pay.
• Check your account often to track your spending and know what’s left.

Frequently asked questions about Kuda Overdraft

1. How does repayment work?

Repayment is automatic. Any money added to your Spend account will first go towards repaying your overdraft. If you don’t make any repayments during the month, you must make the minimum repayment when it’s due to keep using your overdraft.

2. How long do I have to repay my overdraft?

You have 30 days to repay your overdraft from the day you borrow.

3. How do I know when my overdraft repayment is due?

You’ll see the repayment date in the Borrow section of your Kuda app.

4. What happens if I repay more than the minimum amount? due

If you repay more than the minimum amount due, the extra money will go towards paying off your overdraft faster.

5. Where can I find my minimum repayment amount?

You’ll find it in the Borrow section of your Kuda app.

6. How do I turn off my overdraft?

You can turn off your overdraft on the Kuda app if you don’t have an outstanding repayment to make.

Follow these steps to turn off your overdraft:

1. Sign in to your Kuda app.

2. On the app dashboard, tap Borrow, then tap Overdraft.

4. Tap Manage, then tap Disable Overdraft.

If you’d like to cancel your overdraft, please chat with us on your Kuda app.

7. What’s the difference between disabling and cancelling an overdraft?

Disabling your overdraft turns it off temporarily. You can turn it back on at any time. Cancelling your overdraft means you won’t have access to it anymore. You’ll need to apply again. .

8. What should I do if my credit check is still pending?

Just chat with us on your Kuda app.

9. What if I can’t repay my overdraft within 30 days?

You’ll get a 15-day grace period to make at least the minimum payment. If you don’t repay within this period, we’ll turn off your overdraft.

10. Will I get reminders when my overdraft payment is due?

Yes, we’ll send you repayment reminders until you pay.

11. How can I see what I spent my overdraft on?

You’ll get a detailed billing statement 30 days after you use your overdraft. It will show what you spent, what you’ve repaid, and what’s left to repay.

12. When does my overdraft billing cycle start?

It starts the day you use your overdraft.

Conclusion

Whether it’s sorting out bills, handling an emergency, or getting through the month when you’re low on cash, Kuda Overdraft makes life easier. You don’t need paperwork or collateral, and you can access it straight from your phone.

Just remember to use Overdraft for short-term needs and repay what you borrow on time. That way, you stay in control of your money and build better money habits.