Definition of Payday loan:
Monetary loan provided to borrowers that must be paid in full when the borrowers receive their next pay check. The loan amounts granted are typically fairly small and are based on how much money the borrower grosses each pay period. These loans include high interest rates that will usually cause the borrower to acquire additional debt if the loan is not paid back on time.
A payday loan is a type of short-term borrowing where a lender will extend high interest credit based on a borrower’s income and credit profile. A payday loan’s principal is typically a portion of a borrower’s next paycheck. These loans charge high-interest rates for short-term immediate credit. These loans are also called cash advance loans or check advance loans.
A relatively small amount of money lent at a high rate of interest on the agreement that it will be repaid when the borrower receives their next paycheck.
Payday loans charge borrowers high levels of interest and do not require any collateral, making them a type of unsecured personal loan. These loans may be considered predatory loans as they have a reputation for extremely high interest and hidden provisions that charge borrowers added fees. If you're considering a payday loan, you may want to first take a look at safer personal loan alternatives.
Synonyms of Payday loan
Extortionate moneylending, Payday lending
How to use Payday loan in a sentence?
- Payday loans are short-term, often very high-interest loans available to consumers.
- I want to say more the chance of getting a pre-approval pay day guaranteed payday loan adjustable calculators on the net.
- Payday loans are typically based on how much a borrower earns; a borrower usually has to provide a paystub when applying for the loan.
- The individual took out a payday loan out of desperation and that is unfortunate to hear about because it carried disastrous consequences.
- If you have no other options left and really need cash right then you can go and try to get a payday loan .
- Consumer advocates and lawmakers are urging low-income consumers to avoid payday loans.
- A number of laws have been put in place over the years to regulate the high fees and interest rates.
Meaning of Payday loan & Payday loan Definition