Payday loans are called the ideal instant cash option, but it is important that one gets as much information as possible about the complete picture, before you apply for the loan. Payday loans are the short term loans which ensure provision of instant cash to borrowers, who need small loans to meet any emergency need or urgent requirement.
A complete know how of the application and loan qualification procedure, along with how much time will it take for the loan amount to be released by the lender, the payment method, payment deadline, maximum payment duration, as well as details on the loan rollover are some topics one needs to read up on before opting for a payday loan.
Two very important topics which you need to know about as a borrower, are the length of the payday loans and the policy of rollover loans that the lender has to offer.
Making Loan Payments
Of course, it was your intention to pay off the payday loan amount on time, but if different problems crop up and you find out that you won’t be able to meet your payment deadline, then what do you do? You need to know about the maximum length of the payday loans, which is the time till which you need to repay the loan.
Also, in case of inability to make payments on time, many lenders like QuiddiCompare suggest that borrowers opt for a rollover option. The questions that you find probably worrying you would be, for how long can you take out a payday loan? What does the rollover procedure mean if you aren’t able to pay off the loan amount? Find out answers to your questions below.
What Is The Maximum Repayment Term?
It is a normal process for the payday loan to last for a time of around 2 weeks. This includes the time that the borrower will need to be able to repay the payday loan. The time limit, however, can also be decided through discussion between a borrower and the lender. The decided time limit for the repayment of the loan depends upon the preference of your lender and the laws of the state in which you reside.
It is a general rule of thumb in most states that payday loans can last between a time period of 30 to around 60 days.
When Do You Rollover The Loan Amount?
When a borrower is unable to meet their payday loan payments, then they have the option to rollover. There are two ways to do this. The first option is to extend the loan for the same duration as the original (For example, you can get an extension for two more weeks to pay off the loan, similar to the two weeks you originally had to pay off the loan). But in order to get more time to repay the loan, you will need to pay another fee as well.
The second option you have is to apply for a second loan, which actually covers your initial loan, and also includes a new fee. The maximum number of times you will be allowed to rollover the loan depends on the laws within your state. It is a good idea to ask your lender for details about the regulations which are applicable to you.
Make sure that you take decisions after having a clear idea of the maximum loan payment time and rollover regulations.