Oct
12
A payday loan is a small and short term loan and is also called a paycheck advance or payday advance. It covers the borrower’s expenses till the next payday. The loans are between $100 and $500. They are due in two weeks with high interest rate up to 400%. These loans are also referred as cash advances.
There is legislation of payday loans like imposing strict usury limits, limiting the APR, including payday lenders, can charge etc. that varies widely in different countries and different states of USA. It is seen that the majority of industry’s profit comes from repeat borrowers and they are unable to repay loans on the due date. They have to pay fees each time to renew their loans.
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