Payday Loans are the loans which are granted for a very small amount of time on the guarantee that they would be repaid as soon as the next salary or income from their source of earning. Such loans have an extremely high rate of interest and are called by different names such as payday advance, payroll loan, salary loan, small dollar loan or cash advance loan. A payday loan can be offered to anybody irrespective of their credibility. The bank does not see the credit worthiness of the borrower in case of granting this type of loan as it is granted for only 15-20 days and is not long term. The borrower should, however, keep in mind that taking a payday loan would not increase his credibility in the market. He, nevertheless, should have a steady income, permanent bank account and a work experience of at least 6 months to avail this loan.
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