Repayment Options for Payday Loans

Repayment of a payday loan is a natural stage after application, funds transferral and use of borrowed money. The procedure and terms for repaying a loan are established by a microfinance or microcredit company and are agreed in the contract. Loan repayment can be:

  • full. In this case, the borrower pays the full amount of the debt together with interest on a pre-determined day.
  • partial. The borrower pays the debt in installments over a period of time.
  • early. In this case, the borrower also pays the full amount of the debt, but before the appointed date.

Most microfinance and microcredit companies provide many ways to pay debt:

  • using a bank card through your personal account on the company’s website. In this case, you need to specify the details of your card and confirm the debit. Repayment occurs instantly with this payment option.
  • a popular way to repay loans is to pay via e-wallet, for example, PayPal.
  • if you do not have a bank card or e-wallets, it is convenient to pay the debt using money transfer systems.
  • you can pay a small loan by bank transfer. At the bank institution, you need to provide an ID and details for payment. This method is the longest – the transfer can take several days.

Many microfinancial organization allow clients to pay the amount of debt through payment terminals. In most cases, you need to indicate the name of the microfinance organization, enter the contract number and the borrower’s date of birth. Sometimes you need to specify the amount of payment.

If the IFC has offices for customer service, then you can pay off the debt when you personally visit such an office in cash. In this case, you need to present a contract and an ID. All these options are suitable for full and partial repayment of an online pay day loan.

After paying off the debt, you can ask the company for a repayment certificate. The certificate must have a signature and a blue seal. The certificate serves as a confirmation that the debt has actually been paid and that the microfinance organization has no complaints against you.