How do loan payments work?

At Lava, we recommend users make monthly payments on loans to help maintain the health of your loan and avoid runaway interest costs. We believe it is the financially responsible thing to do.

Each month, we recommend you make a payment equal to the minimum amount required to service the interest on your loan. You can always pay more to further reduce your loan cost. If you miss this payment, your loan will not be closed. You will be charged a late fee until the payment is made, which is 0.2%, assessed on your loan balance weekly, until you make your payment.

At the end of your loan term, you can pay off your loan in full, or you can extend your loan. If you don't do either, your loan will not be closed. You will accrue late fees until you choose one of the prior 2 options.

We make it seamless to make payments on Lava. You can use all major payment rails to add money to Lava, and you can even set up autopay. And if you ever have any questions or need help with managing your loan, our client services team is here to assist every user with 24/7 US-based human support. To learn more about repaying your loan, see this article.