Pay day loan is a short term fund provided by the banks. This kind of a loan would help you meet your unexpected emergencies or unexpected bills in the middle of the month. The period of repayment is usually 2 weeks, however you can extend the duration if it’s needed. Pay day loan is easy to get with a minimum requirement of job more than six months and a minimum of thousand dollars income.

There are advantages and disadvantages with this time of loan and few are detailed below :-

Advantages of pay day loan

• It helps in the middle or end of the month when you need money for unexpected emergencies
• Minimum requirements to avail the loan. (The borrower should be at 18 years of age, minimum of 1000$ of income, should be a citizen, income proof probably a pay slip and check in account which is at least six months old.
• Less time involved getting payday loan; usually the next business day or some time it’s next couple of hours.
• It can even be availed by people who have bad credit, defaults and also bankruptcy.
• This loan is not only provided if you visit the lending store, there is a option of getting payday loan over the internet as well, coz there might be situations when you might not have time to visit the lending store in person with your busy schedules.
• In overall is one of the important tools which help a person who is need of immediate cash.

Disadvantages of Pay day loan

• In Usual, it has higher interest rate compared to any other loans.
• Huge amount incurs in late fee if you fail to make the payment on timely basis.
• This loan is not provided to all the residents, it’s only provided to the Citizens.
• You will not be eligible if you do not have fixed work place or your income is lesser than 1000$ per month.
• It has high disadvantage to the poor as it has very high interest rate.