PIERRE, S.D. (AP) — A South Dakota banking official says people considering taking out short-term loans should make sure they understand the payment terms before they borrow money.

Bret Afdahl, director of the state Division of Banking, says people need to understand the repayment terms for the different kinds of loans that are available.

Afdahl says short-term loans are different than installment loans that must be repaid over a specified period of months. Payday loans are short-term loans secured with a check, a financial account or a person's salary. Title loans are secured by an interest in a motor vehicle and are designed to be paid in a single installment.

Afdahl says people can face additional charges if they cannot pay off those short-term loans in full at the due date.

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