QandAs: Loans

Is There A Minimum Term for a Payday Loan?

Answer:
Usually. Most payday lending companies in the country

have a short minimum loan term of about two weeks. However, some states have a minimum (some state this is their maximum term) loan term of sixty days.

The amount of money which can be borrowed from a payday lending company ranges anywhere from $100 - $1000. Interest rates charged for payday loans are typically triple digit. Depending on the company, and the amount borrowed, the APR can be as much as 500% or more.

Because these loans have short terms, it is often difficult for the borrower to pay back the full amount of the loan, as required. When this happens, the borrower usually “rolls over” the current loan and incurs even more expenses.