Payday loans are typically due on the borrower's next payday, hence the name "payday loan." The due date is usually aligned with the borrower's pay schedule, which may be weekly, bi-weekly, or monthly, depending on their employment. However, the specific due date can vary depending on the terms of the loan agreement and the lender's policies.
In many cases, borrowers provide the lender with a post-dated check or authorize an electronic withdrawal from their bank account for the full amount of the loan plus any applicable fees on the due date. If the borrower is unable to repay the loan in full on the due date, they may have the option to extend the loan term by paying a fee, known as a loan rollover or renewal. However, this can lead to additional fees and interest charges, making the loan more expensive over time.
It's essential for borrowers to carefully review the terms and repayment schedule of the payday loan agreement to ensure they understand when the loan is due and how much they will need to repay. Failure to repay a payday loan on time can result in additional fees, collection actions, and damage to the borrower's credit score.