QandAs: Loans

What is the Maximum Term for a Payday Loan?

Answer:
The maximum term for a payday loan can vary from state

to state and ranges from 30 to 60 days. The minimum or short term for payday loans is usually only two weeks.

Payday lending companies offer quick cash with no credit check; however, triple digit interest rates are charged to the borrower. Depending on the payday lender, a borrower usually only needs a recent paycheck stub as proof of employment and a valid bank account to obtain a loan of $100 to $1500.

Many borrowers often have difficulty paying back the full amount of their loans. If a borrower chooses to “roll over” his current loan he continues to incur additional debt; many borrowers who utilize payday loans become trapped in a perpetual cycle of debt.