A Premium Loan on Pigeon is any loan that includes one or more of the following:
Exceeds $5,000 USD in principal
Exceeds 12 months in term length
Utilizes Contract Protection
Utilizes Custom Repayment Schedule
Utilizes Delayed Repayments
Uploads a Custom Contract
Premium Loans can be unlimited amount but up to a 360-month limit on duration.
To activate a Premium Loan, Pigeon will present you or the other party of your loan with the option to select either a $4.99/month plan (billed once, at loan start) plan or a $7.99/month plan (billed monthly). This billing will exist only for the duration of your loan.
Whenever activating a Premium Loan, only one of the two parties will be asked to cover the subscription cost – not both. This can be either the Borrower or Lender, and you can select which individual that will be during your loan setup. You can read more about how billing works here.