rollover loan

rollover loan

(1) A construction loan that automatically converts to permanent financing upon completion of construction.(2) A loan from a person's own retirement plan that continues into a new retirement plan if one changes jobs. (3) Short-term loans (as short as 14 days) that automatically renew if not paid,but incur substantial fees in connection with the renewal.The most common type is the payday advance loan.

References in periodicals archive ?
The OFT report comes to some pretty damning conclusions about the payday loan industry, revealing that half of its revenue is earned from rollover loan, and there are also concerns over lenders failing to carry out proper affordability assessments.
Based on the conventional trade finance solutions, ICBC provides rollover loan in line with the different stages of ship building, supplemented by forward settlement of different tenors in order to address their difficulty to access bank loans.
This includes rollover loans, so the amounts outstanding at any time were lower but amounted to hundreds of billions.
The advice from CAB is very clear: "If you have got into debt, avoid rollover loans.
Ms Lewis, 60 - believed to be on PS60,000 a year - said the payday lending industry has "very bad practices", such as rollover loans, yet she is against a crackdown.
Reiterating comments made in her April 2 testimony before the Subcommittee on Financial Institutions and Consumer Credit, Fox said provisions offered in the bill, including repayment plans and a ban on rollover loans, have already proven ineffective in states where they have been attempted.
A fast-growing, lucrative industry will continue to prey on low-income and vulnerable citizens by charging exorbitant interest rates and offering rollover loans that can bury borrowers in debt.
Mr Mayo also called for a ban on rollover loans, where people are lent more money before they've paid their current loan.
At the same time people appeared not to compare different loans, while they were often encouraged to increase the amount they borrowed through so-called step-up and rollover loans, which tied them into their existing lender.
Worryingly, more and more people are being treated unfairly, being offered loans that they can't afford to repay and put on to rollover loans with huge interest rates and charges.