Payday Loans have no standard definition. They are also known as cash loans or short term personal loans. In the West, Payday Loans are typically short-term loans that you need to repay in full, along with the interest and associated charges, in a few weeks – when you get your next pay cheque (salary). In India, Payday Loans are your usual short term personal loans for salaried consumers – but of smaller amount (lesser than Rs 1 lakh) for short tenures (less than a year).
Do note that while these loans are easier to avail, it may lead to a debt trap since they usually come with high interest rates, high fees and charges along with short payment terms.
