This is one of the best online loan platforms, presently there are so many microfinance banks, and this online bank including Kada that is making tremendous headway in the online banking sector.
It has contributed greatly to making it easy for business owners to obtain loans from the site to be able to obtain a quick loan to fund your business.
In this article, we will discuss extensively how to obtain a loan from the kada bank app, the requirements for this loan, and how to get approved. Stay tuned and pay close attention.
Kada Microfinance Bank
Kada microfinance bank is one of the biggest online banking industries in Nigeria with one major aim and that is to offer loans to business owners and numerous salary earners that are based only in the northern part of Nigeria known as Kaduna.
This institution came into existence and received its license to become a full online banking sector in 2008 and since then it has grown to become one of the most reputable banking industries in the country with one purpose and that is to help businesses.
Different Products Kada Microfinance Bank Offers
Kada microfinance bank is known for offering many different types of loan services to individuals and businesses, some of the loan services Kada microfinance bank offers are.
- Microloans
- Salary advanced
- Group loan
Microloans
This is one of the most unique types of loan created by this platform, and across the nation, there is hardly any bank that offers this type of loan.
Microloans are loans created by this platform that is exclusively for students and petty traders.
The aim of this loan is strictly for small businesses, students, and medium size businesses, this platform gives them a chance to obtain quick loans to grow their businesses.
However, for you to get a microloan from Kada bank you need to fill out a very important loan application, in addition to this, you will provide valid collateral that will be used for the loan.
Just like every other bank, Kada bank provides an interest rate of 5% for these microloans and the tenure is just 6 months.
Salary Advance
This is a unique type of loan that is offered specifically to salary earners, this loan is obtained by salary earners with the hope of paying back when they get paid.
This loan is usually taken by salary earners only and during emergencies. But it is not open for just any salary earners, you must be a salary earner of a respectable organization.
The maximum amount of loan you can take under this loan category is 50% of your expected month-end salary and the tenure is just for 30 days.
Furthermore, you can repay the loan from your next salary agreement. Salary earners only apply for this loan during the period of emergency or when they need a quick loan.
Group Loan
This loan is very specific and for only individuals who want to borrow from the bank as a group.
What this implies is that an individual cannot borrow a loan under this category, it is only for a group of people, and thus loans usually attract a 4% fee alongside other necessary fees.
To apply for this loan, you all have to come as a group of people, fill out the form, and state what you need the loan for, upon agreement and if the loan is approved, you will be credited.
How To Apply For Kada Loan
For you to apply for a Kada loan you have to follow the instructions below, remember that any instructions you skip or violate will make your loan not to be approved. These are the steps below
Open an account with the bank
You cannot borrow from this platform if you don’t first open an account with the platform, opening an account with the bank shows a level of your commitment to the bank and will aid in the approval of your loan.
Fund Your Account and Use it
After you’ve successfully created an account with the bank, the next thing to do is for you to fund the account.
Funding your account can also be called account servicing, which means you need to use the account for business transactions, this will greatly help to make you more qualified for higher loans and show that you are very committed.
Apply For The Loan
The next thing you need to do is to apply for a loan. To apply for a loan and get approved, you need to make sure you have a strong reason why you need the loan.
If you are applying for a loan as a group of people, you will need to provide a valid reason why you need the loan and state how you intend to pay back the intended loan you want to borrow.
Provided that your reasons are genuine and feasible, there’s a high chance that your loan will be approved.
Provide the important documents
The next thing you must do for your loan to be approved is for you to provide the necessary and required documents completely, missing any of the documents will lead to you not obtaining the loan.
Another important thing you should have at the back of your mind before you even look to apply for a loan on this platform is that you need collateral, without collateral you cannot apply for a loan on this platform.
Requirements For Application Of Loan On Kada Microfinance Bank
There are some documents you need to provide before you can apply for a loan on this platform and some of them are;
- Employment letter or letter of employment
- A valid means of identification which can include your national ID card, your international passport, your driver’s license, and others
- Staff identity card
- Payslip
- 6 months’ bank statement of account, the reason for this is for them to determine if you can pay back the amount of loan you intend to take from the platform.
- Two credible guarantors
- Utility bills and others
Kada Interest Rate
Before you apply for a loan on this platform, you need to know the bank interest rate, the interest rate I’d usually between 4% to 11% and this depends on the amount of loan you borrowed from the platform. The category of loan you borrow will to a large extent determine the interest rate.
How To Contact Kada Microfinance Bank
- Address line : 3 Rigachikun Poly Road Kaduna
- Phone number: 08098909343
- Email address: [email protected]
Advantages of Kada microfinance bank
There are many advantages of Kada microfinance bank and some of them are
- Flexible loan condition
- Competitive rate
Flexible Loan Condition
What this means is that this platform offers different types of loans that you can easily choose from, either as an individual or as a group of people, the loan is flexible in the sense of you can easily payback
Competitive rate
When you check the interest rate of this loan app you will find out that it is much better than most other platforms out there. By competitiveness, we mean that you can easily compare the interest rate of this loan app to others and you will find out that they have the best deals.
Disadvantage
- Collateral Required
- Only those in Kaduna can apply
- Guarantors needed
Collateral Required
This implies that you cannot apply for a loan on this platform without providing collateral, this is a major disadvantage of this loan platform.
Only those in Kaduna can apply
What this means is that the loan application and approval are restricted to those in Kaduna and it is not made available for everyone across the country.
Guarantors Needed
You cannot apply for a loan on this platform without bringing in a guarantor who will certify that you can repay the amount you wish to borrow.
Bringing a guarantor is a must and this is one of the setbacks people have when it comes to applying for a loan on this platform
Frequently Asked Questions
What happens when one defaults on payment?
Like every other loan platform, the Kada loan platform has its rules and regulations and moral Operandi that guides its operations.
If you fail to pay for the loan you’ve borrowed after a specific time, this loan platform will confiscate your collateral, or sell it to replace the money you borrowed.
How good is the Kada loan app
This is one of the best loan platforms in Nigeria, with over a million downloads and numerous reviews, it is safe to say that this platform is very good.
In addition to that, they have different types of loans to fit anyone, which makes it one of the best and unique types of loan platforms in the country.
Does the Kada loan app require collateral?
The answer is yes, this loan app requires collateral before application, the reason for the collateral is that on account you’re not able to repay the loan you borrowed, they will sell the collateral and replace the money you took.
Bottom Line
Kada bank is a reliable financial institution helping individuals and groups of people to foot their bills.
In this article, we have outlined everything you need to know about kada bank and how to apply. We are confident that it is worth your time.
For more bugging questions, the comments section is available.
