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The short answer
Kuda's overdraft terms state a charge of 0.23% to 0.8% of the amount you borrowed every day until you repay in full, with no interest if you pay back before midnight on the day you borrow, as at October 2026. On a ₦50,000 example overdraft, 30 days costs ₦3,450 at the bottom of that range and ₦12,000 at the top.
How Kuda states the overdraft charge
Kuda Microfinance Bank prices its overdraft as a daily percentage, not a monthly or annual rate. Its help centre article on overdraft terms says, as at October 2026: "We'll charge you 0.23% - 0.8% of the amount you borrowed every day till you pay back the entire amount." Three details in that sentence matter.
- It is a range. Your own daily rate is somewhere between 0.23% and 0.8%, and the app shows it before you use the overdraft.
- It is charged on the amount you borrowed. The wording points to the original sum, not a balance that shrinks. If you repay part, check in the app whether the daily charge falls with it.
- It runs until you pay back the entire amount. There is no fixed end date that stops the charge.
The same terms give one free window: Kuda says it will charge interest only if you do not repay before midnight on the day you borrow. Use the overdraft in the morning and clear it before the day ends, and you pay no interest on it. Kuda also says that if an overdraft requires a credit check, it may charge a fee for that service; the amount is not published, so look for it on the offer screen.
What 7, 14 and 30 days cost
This worked example uses the bottom and top of Kuda's stated range on a ₦50,000 overdraft, assuming the charge stays on the full ₦50,000 throughout.
| Days used | At 0.23% a day | At 0.8% a day |
|---|---|---|
| 1 day (₦50,000 × rate) | ₦115 | ₦400 |
| 7 days | ₦805 | ₦2,800 |
| 14 days | ₦1,610 | ₦5,600 |
| 30 days | ₦3,450 | ₦12,000 |
Smaller sums scale the same way. ₦10,000 for 14 days costs ₦322 at 0.23% and ₦1,120 at 0.8%. The table also shows why a daily rate is easy to underestimate. 0.23% a day sounds tiny, but over a year it adds up to about 84% of the amount; 0.8% a day is 292% over a year. An overdraft priced this way is built for days, not months. Our explainer on APR versus flat fees covers how to turn any daily or monthly figure into an annual one.
How repayment works and why it matters for cost
Kuda's terms say repayment comes out of your Spend account. If there is not enough money when repayment is due, Kuda takes it in parts each time money lands in the account. That has two effects. First, the overdraft is cleared by your next inflows, so a salary or transfer can disappear into repayment before you see it. Second, until the whole amount is cleared, the daily charge keeps running. The quickest way to cut the cost is to pay the full balance as soon as you can rather than waiting for deductions to catch up.
Kuda does not publish a separate late fee. The terms do say that if legal action becomes necessary, Kuda will bill you for the expenses of that process. Unpaid credit can also be reported to credit bureaus and affect future offers from any lender; see how credit bureaus work in Nigeria.
Limits and who gets one
The terms article does not state a limit range or eligibility rules. Kuda offers overdraft limits to selected customers based on how they use the account, and the limit appears in the app when one is available. If you cannot see an option, our guides on how Kuda Overdraft works and why the overdraft may not show cover the common reasons.
What to check first
- Open the overdraft screen and note your own daily rate, not the range.
- Multiply the amount by the daily rate and by the days you expect to need it.
- Look for any credit check fee on the offer screen.
- Plan to repay in one go, ideally before midnight on the same day if the need is that short.
- Compare the total with a short-term loan that charges monthly; see overdraft versus loan app.
Where Pryme fits
If your short gap is for a particular purchase such as groceries or medicine, Loans on Spaces is a different shape of credit: Solid Allianze MFB may offer a limit, the amount, cost and repayment date are shown in full, and you accept before anything is drawn. It can only be spent with Spaces merchants.
Questions people ask
What is Kuda overdraft interest rate per day?
Kuda's terms state 0.23% to 0.8% of the amount borrowed every day until full repayment, as at October 2026. Your exact rate is shown in the app.
Is Kuda overdraft free if I pay the same day?
Kuda says it charges interest only if you do not repay before midnight on the day you borrow, so repaying the same day avoids interest.
How much is 0.3% daily on ₦20,000 for a month?
As an example, 0.3% of ₦20,000 is ₦60 a day, so 30 days is ₦1,800. Use your own rate from the app.
How does Kuda collect overdraft repayment?
From your Spend account. If the balance is short, Kuda deducts in parts as money comes in until the overdraft is cleared.
Sources
- Kuda Help Centre: Overdraft terms explained · accessed Oct 2026
- Kuda Help Centre: Overdrafts FAQs · accessed Oct 2026
- Kuda: Overdrafts (Nigeria) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.