Payday loans are emergency, temporary, high interest loans which can be availed at short notice against the paycheck and employment history. It is meant for an unsecured, short-term, cash advance until next payday. Payday loans are helpful to cover small, unexpected expenses like medical emergencies etc while avoiding costly bounced-check fees and late payment penalties. These loans are approved much faster and require fewer papers. Even people with bad credit history can apply for it.

Now, you can even apply online for Paydays loans and the loan will get credited to your bank account within 24 hours. Sometimes the lender may require a cheque from you which he will cash after the next pay comes if you are not planning to rollover.

The fee charged will be either a percentage of the loan amount or affixed amounts like say $20 for all loans from $50 to $500. In case you roll over the loan, the fee will be added for every period say for every 15 days full fee will be added up. If you need to borrow a sum of $200 then you would have to write a cheque of $220 for a period of 2 weeks. The extra amount is the finance charge which the lender would not charge until the next payday. But after that if you fail to pay back the amount he can deposit the cheque of $215. The usury law prohibits interest rates if it exceeds the annual percentage rates. As the financial charge goes on increasing, in most of the states the rollovers are forbidden.

Benefits of Pay Day loans are: