How does billing work for Premium Loans?

Published on: 02 February, 2022

Updated: 01 May, 2024

Customers with Premium Loans will have the option to be billed $4.99 per month for each month of the loan, billed once on the loan start date, or $7.99 per month billed monthly beginning on the loan start date.

Either the Borrower or the Lender can cover the cost of a Premium loan on Pigeon – it’s up to you both to decide who covers the cost.

When creating a Premium Loan, either the Lender or the Borrower will be able to enter their billing information and select a payment plan. Billing is on a per-loan basis and does not carry over into other accounts).

If you select the $4.99 per month option, at loan activation, you will be billed a single amount (i.e. $4.99 x the number of months of your loan).

Customers that select the $7.99 per month billing option will be billed once per month beginning on the date that their loan becomes active. Monthly billing will continue through the last month of the loan duration, or until the loan is fully repaid or forgiven.

For Pigeon customers with multiple Premium Loans, we will continue to bill you once per month, if you’ve selected the monthly billing option. The monthly billing amount will be equal to $7.99 x the total number of active Premium Loans you’ve chosen to pay for. E.g. If you have 4 active Premium Loans, and you’ve chosen to pay each one, your total monthly bill will be $31.96.

If both parties agree to extend a Premium Loan before or after it expires, the additional months will be billed to the same individual at the same rate as the original loan ($4.99 per month billed at loan extension or $7.99 per month billed monthly).

In the event of a loan cancellation, monthly billing for a Premium Loan will be discontinued. Refunds will not be issued for Premium Loan plans paid in full at the start of the loan (i.e. the $4.99 per month plan).

If you have any more questions about billing, please feel free to contact us.

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