Rollover Loan



A rollover loan is a type of loan which is automatically renewed when it is not repaid in full within a predefined loan term. Instead of entering into default, as would be the case with other types of loans, the debt is simply carried over to a new loan.

The terms and conditions of the new loan may be different to those of the original loan. Payday loans are one common example of rollover loans, as are rollover mortgages.



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Daniel Dreier is editor and personal finance expert at moneyland.ch.

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