Outlook Money
Payday loans, also known as salary loans, are short-term loans that let salaried employees borrow a portion of their salary before payday.
Payday loans can be used for a variety of purposes, which include day-to-day expenses, emergency expenses, or medical expenses.
Payday loans are of small amounts of up to Rs 50,000 depending on the profile of the borrower.
Payday loans provide quick access to funds, the loan is approved within a few hours and disbursed soon and this makes it an attractive option when cash is needed on an urgent basis.
Such loans are given to those who do not have a credit history and do not require any credit checks.
These loans are unsecured in nature and have very high interest rates of 24-36 per cent per annum.
Compiled by Syed Muskan