Payday loans are small, short-term loans with very high interest rates. They are intended to bridge a financial gap until the borrower’s next payday.
- Drawbacks:
- Extremely high interest rates can lead to a debt cycle if not repaid promptly.
- May not be a sustainable solution for long-term financial needs.
- Eligibility:
- Varies depending on lender.
- May require proof of income and employment.
- Quick approval process, often with minimal credit checks.