Payday loan is defined as “a relatively small amount of money lent at a high interest on the agreement that it will be repaid when the borrower receives their next wages”.
The features of payday loan are small quantum, fast processing time and with borrower agreeing to pay back when he receives his next wage. This type of loan is suitable for borrowers who have urgent and emergency predicament like paying essential bills and pay for unforeseen situation.
This type of loan is usually suitable for short term cash flow needs.
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