A payday loan is a short-term, unsecured loan. Payday loans are usually issued for a two-week term and offer a quick cash solution for people needing cash. They are often used by people who need money for unexpected expenses.
The term “payday” is often used to describe when employees receive their wages and payday loans are due. Payday loans are designed to be repaid in full on the date specified in the contract. If the loan is not paid by that date, the borrower will face significant financial penalties and a high-interest rate.
How does a Payday Loan Work?