Payday loans are loans that are made for a very small amount of time with the guarantee that they will be paid back as soon as your source of income’s next salary or income. Such loans carry extremely high interest rates and go by many different names, such as payday advance, payroll loan, salary loan, small dollar loan, or cash advance loan. A payday loan can be offered to anyone, regardless of their credibility. The bank does not see the solvency of the borrower in case of granting this type of loan, since it is granted for only 15-20 days and is not long-term. However, the borrower should keep in mind that taking out a payday loan will not increase their credibility in the market. He, however, must have a stable income, a permanent bank account and a work experience of at least 6 months to avail this loan.

Online payday loans are becoming more and more popular these days. One of the best things about the online payday loan is its easy application process. The application takes less than 5 minutes to complete and the portal is usually open 24 hours a day. The borrower can simply submit the loan application online and the funds are transferred via direct deposit to the borrower’s account. Loan repayment in such a case is directly withdrawn electronically from the borrower’s account after they receive their next salary or after their post-dated check is due. A list of direct payday lenders is as follows:

1. Cash Check: They give your application approval in 5 minutes by providing loans online or at their offices in the US.
2. CashAdvance.com: They provide an online payday loan once the customer is approved by verifying their valid account and not just any prepaid or savings account.
3. Cash center: This is one of the oldest payday lenders in the country with a 24/7 online application portal.
4. My payday loan: This also provides the client with an approval response within 4 minutes of completing the application form. It is one of the largest of its kind in the country.
5. Blue Trust Loans: Finances loans between $300 and $1,250 in almost every state. With a repayment time of approximately 6 months, these loans do not have a repayment penalty.
6. money lion: They offer loans to almost every state in the country with different rates and terms in each state. It has loan programs available to consumers at all ends of the credit score spectrum.
7. net credit: It provides an instant approval decision with no loan limits for the beginners. Applicants are eligible for loans from $1,000 to $10,000.
8. maxend: They have many different loans and terms and creditworthiness is not a criteria that is considered. Offers personal loans up to $1,300.

There are jurisdictions that limit the amount of interest charged on loans, including payday loans. Depending on the method used, the annual percentage rate (APR) for each loan may be different. In the US, for example, the Uniform Small Loan Laws (USLL) have set the APR between 36% and 40%. The main advantages that these types of loans provide great profitability to the industry, the welfare of households increases, since people who do not require short-term loans can easily obtain long-term loans and provide a service that is not available on the market as a requirement. The loan is usually from people who have exhausted all their other short-term credit purchase options. These types of loans are also criticized by some on the grounds that they drain money from low-income communities by charging an exorbitantly high interest rate. Also, in some countries, lenders’ collection practices are extremely aggressive, unlike in countries like the US, where there is a standard collection practice established by law.