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Overdrafts FAQs
Anietie avatar
Written by Anietie
Updated over 10 months ago

1. What is an overdraft?

  • It’s a short-term cover to help you keep your life running smoothly.

  • If your Spend account balance is ever too low for comfort, you can always take some money from your Borrow account to cover your expenses and pay back whenever you get paid.

2. How can I get an overdraft?

  • If you use Kuda actively as your main bank account, you're automatically qualified to get an overdraft.

  • If you qualify for an overdraft, we'll add it to your Borrow account and you can use it whenever you need to.

3. Do I need to fill a form or provide collateral?

No, you don't need to fill a form or provide collateral to get an overdraft.

4. How much overdraft can I take?

The app will show the maximum overdraft you can take.

5. Will I pay a fee to get an overdraft?

No, but if we need to run a credit check to be sure that you qualify for an overdraft we may charge you a fee for that service.

6. Will l pay interest on my overdraft?

  • Yes, we'll charge you a daily interest of 0.3% of the amount you borrow till you pay back the entire overdraft.

  • Interest counts if you do not pay back before midnight on the day you borrow.

7. What happens if I don't spend what I borrow?

If you don’t spend your overdraft or you spend just a part of it, we’ll move the money back into your Borrow account.

8. How do I pay back an overdraft?

  • Overdraft repayments are made automatically from your Spend account.

  • 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.


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