About Company
Kora is a financial app for college students dedicated to assisting students in achieving financial readiness throughout their studying years and beyond. With a focus on financial literacy, smart savings, and credit building tips, Kora's platform has already empowered more than 500,000 students.
Kora recognizes the importance of students being equipped with the necessary financial knowledge and skills before they graduate, rather than struggling with their finances for years after completing their education. Through their platform, Kora provides valuable resources and money management tools to enhance students' understanding of personal finances, helping them make informed decisions, save money, and establish a strong financial foundation.
Key features
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Tailored for College Students. Kora is specifically designed to meet the unique financial needs of college students, offering a range of features geared toward this demographic.
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Product Diversity. The app provides several financial products, including KoraCash and KoraDrive, offering versatility to address different aspects of students' financial lives.
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Inclusive Loan Eligibility. Kora adopts an inclusive approach to loan eligibility. Unlike traditional loans that often require a good credit report or credit history, Kora opens its doors to applicants without such stringent prerequisites.
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iOS Exclusivity. Currently available exclusively for iOS users, Kora ensures a seamless financial management experience for Apple device owners.
Pros and cons
Pros
Cons
Reliability
Kora Money can be considered reliable, and its credibility is reflected in its B+ accreditation by the Better Business Bureau (BBB). The B+ rating from the BBB signifies that Kora has met certain standards of trustworthiness and ethical business practices. This accreditation provides users with an additional layer of confidence in the reliability of Kora Money as a financial service provider.
How to apply for a Kora loan?
To apply for a Kora loan, follow these steps for KoraCash:
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Download the Kora App. Get started by downloading the Kora app from the App Store.
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Create a Kora Account. Use your .edu email address and phone number to create your Kora account.
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Provide Personal Information. Submit your birthday, home address, and citizenship information to pull your credit profile. This step is crucial for the loan approval process.
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Check Eligibility. After submitting your information and clicking on the KoraCash tab, you will instantly know if you are eligible for KoraCash. Approval decisions take into account factors such as age, residence state, and credit profile, and this process will not impact your credit score.
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Select Loan Details. If approved, you can choose the loan amount and repayment duration. The app will display monthly payments and interest amounts for your review.
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Connect Bank Account. Connect your bank account for the deposit of your cash. If your bank is already selected, click next. If not, click +Add bank account, search for your bank, log in, and complete the connection process.
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Review and Accept Loan Agreement. Review your Loan Agreement and other related documents, including details on the loan amount, interest rate, repayment schedule, and consequences of missed payments. Click on "I have read and reviewed the information below," then click "Agree and Submit."
For KoraDrive:
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Visit the KoraDrive Website. Apply for KoraDrive on the website, and you don't need to have a specific car chosen before applying.
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Provide Necessary Information. Have your .edu email, employment details, school information, and financial information (possibly income or supporting documents) ready. Also, prepare a picture of your driver’s license.
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Fill in Application Details. Fill in state-specific information, create a login and password, and verify your email address.
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Connect Bank Account. Use a third-party connection software to link your bank accounts.
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Receive Pre-Approval. Upon pre-approval, you'll see the maximum loan amount you qualify for.
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Submit Purchase Agreement. After approval, submit a purchase agreement from the dealership for the vehicle you intend to purchase.
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Review and Sign Loan Agreement. The underwriting team will review your documentation and send you the loan agreement contract for electronic signature.
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Set Up Payment Method. Set up a payment method for future installment payments, typically using the bank account you entered earlier.
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Provide Additional Documentation. Prior to disbursing funds to the dealer, submit proof of the vehicle titling application and valid vehicle insurance.
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Receive Funds. Once titling documents are received, Kora will release the funds to the dealer via wire transfer, and you're all set!
Conditions and requirements
Conditions
KoraCash
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Loan Amount. KoraCash offers cash loans ranging up to $3,000.
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Interest Rates. The interest rate varies based on the loan amount, repayment duration, and the borrower's state of residence.
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Repayment Terms. Users will see the loan amount they qualify for and the available repayment duration. They can customize their options to calculate the monthly interest amount.
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Credit Building. The company reports KoraCash payments to major credit bureaus, allowing borrowers to establish positive credit history and potentially improve their credit score. Timely repayments can help increase credit scores, while multiple missed or late payments can have a negative impact.
KoraDrive
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Eligibility for Students with No Credit History or Co-Signers. KoraDrive accommodates students who may not have an established credit history or access to a co-signer.
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Loan Amount. KoraDrive loans start at a minimum of $5,000, providing financial support for both new and used vehicles.
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Loan Terms. Borrowers can choose from a range of loan terms, spanning from 12 to 60 months. This flexibility allows students to select a repayment plan that aligns with their financial situation and preferences.
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Interest Rates. Unfortunately, specific interest rates are not disclosed on the website. It is advisable for potential borrowers to contact KoraDrive directly or review the loan agreement for detailed information on interest rates.
Requirements
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Age Requirement. Applicants must be at least 18 years old and meet the age of majority as determined by the state of residency.
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Educational Status. Applicants should be either currently enrolled in a U.S. college or university or have recently graduated.
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Valid .edu Email. To be eligible, applicants must be enrolled in or have recently graduated from an approved U.S. college or university with a valid .edu email.
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Residency Status. Applicants should be U.S. citizens, Green Card holders, or hold A5, C8, F1/OPT, G, H1B, J1, L1, O1 Visa.
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Identification. A valid identity document with a social security number is required for the application.
Ways to receive the money
Upon approval of your loan application with Kora, the borrowed amount will be deposited directly into your bank account. This streamlined process ensures a quick and convenient transfer of funds to your designated bank account, providing you with timely access to the financial assistance you need. The simplicity of this method aligns with Kora's commitment to providing a straightforward and efficient experience for users seeking to manage their finances, borrow money, and meet their financial goals.
Products
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KoraCard. It allows users to get up to 10% cash back on their spending. It can be loaded with funds from a personal bank account. The KoraCard does not have annual fees, membership fees, overdraft fees or any other hidden fees.
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KoraCash. It provides users with access to loans ranging up to $3,000. This product is designed to help individuals build their credit history. Users can choose flexible terms and benefit from competitive interest rates.
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KoraDrive. This is a car loan product specifically tailored for college students. It does not require a credit score, Social Security Number, or a co-signer. Students can choose their desired car, select the auto loan amount, and determine the repayment period at a low Annual Percentage Rate (APR). By making on-time payments, users can also build their credit history through this product.
Other Personal Loans
How to repay a Kora loan?
Your KoraCash payments are automatically withdrawn from your bank account on the scheduled payment date, with the transaction reflecting in your bank account within 1-2 business days. You can opt for automatic payments either monthly or bi-monthly.
KoraCash customers can choose to make manual payments directly through the app. Navigate to the KoraCash tab and click on the "Make Payment" button. You have three payment options:
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Next Payment. Make your upcoming payment manually, with no fees or penalties for early payments.
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Pay Off Loan. Pay off your entire outstanding balance at any time without incurring fees or penalties for early repayment.
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Custom Amount. Choose a custom payment amount, but be mindful that if it's less than the next automatic payment, you'll still owe the difference on the due date. For example, if your next automatic payment is $50 and you make a custom payment of $20, you'll owe the remaining $30 on the due date. Missing this balance may result in late status and applicable late fees.
Once you've selected your preferred payment option, ensure that the displayed payment method is the one you want to use, review the payment details, and click "Make Payment" to complete the transaction.
Reasons for getting rejected for a Kora loan
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Eligibility Criteria. Failure to meet specific eligibility criteria, such as being a college student or recent graduate, having a valid .edu email, or meeting age requirements, can result in rejection.
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Incomplete Information. Providing incomplete or inaccurate information during the application process may lead to rejection. Ensure all required details are accurately submitted.
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Geographical Restrictions. Depending on your state of residence, certain Kora services, like KoraDrive, may not be available, leading to rejection.
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Visa Status. For international students, not holding an eligible visa status, such as F1/OPT, may impact loan approval.
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Income Verification. Inadequate or unverifiable income information could contribute to rejection, especially for certain loan types.
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Excessive Existing Debt. High levels of existing debt or financial obligations may impact your ability to borrow additional funds.
Loans like Kora
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Rise Credit
RISE Credit is a reliable online lender that provides loans up to $5,000. They have a streamlined application procedure, allowing borrowers to have funds transferred to their accounts as early as the next business day. They present the flexibility of choosing a payment schedule that fits with the financial preferences of the customers, although some state-based restrictions might apply. A notable feature of RISE Credit is its 5-Day Risk-Free Guarantee, which permits borrowers to revoke their loan and return the principal with zero fees or interest within the given period. Additionally, RISE Credit grants customers complimentary access to their credit score and credit monitoring alerts through Credit Score Plus, offering valuable financial insight.
OneMain Financial
OneMain Financial stands as a distinguished and enduring lender, offering personal loans that range between $1,500 to $20,000. Boasting a century’s worth of experience in the financial sector, they have garnered the trust of a vast customer base. Their loan terms include fixed rates and fixed payments, offering a predictable and manageable repayment scenario to borrowers. OneMain Financial emphasizes personalized service, ensuring that the distinct needs of each customer are addressed. With a widespread network of approximately 1,400 branches, they provide easy access and convenience for individuals in search of financial aid.
Universal Credit
Universal Credit requires applicants to have a minimum credit score of 560, thus excluding those with no credit history. It is appealing for its credit-enhancement features, making it suitable for individuals with fair or poor credit looking to better their scores. Providing larger loan amounts than Oportun and next-day funding upon approval, it emerges as a solid choice for significant, urgent financial needs. Universal Credit extends its loan services across all 50 states and Washington, D.C., offering a wide geographical coverage.
Editorial opinion
Important
How to Choose a Lender
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Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
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Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
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Carefully review all the terms and conditions of your payday loan contract.
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Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
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Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
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Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.
