A Payday loan or a cash advance payday loan is a short-term cash loan which is small and is typically given to a borrower by a bank in order to cover their expenses before their payday. It is typically used to cover sudden or unexpected expenses for short periods of time.
The primary purpose of a payday cash advance is to help borrowers with unforeseen expenses before they receive their paycheck. This is useful to students or families to cover a range of expenses such as medical bills, utility bills, travel expenses, etc.
Payday loans are usually small, between $100 and $1500, although there are differences in amounts based on the borrower’s ability to repay and the legislation of different U.S. states. In some states, payday loans are illegal while they are heavily regulated in other states.
The base amount for most loans of this type is $100, while some lenders may change the loan amount based on the borrowers repayment ability and bank regulations.
Since advance loans are intended for short-term use, the repayment period of these loans is about 30 days. Some loans come with a grace period of about 10 days for repayment.
Yes, a single borrower may borrow a quick cash or cash advance even if they are already paying off another payday advance loan. While most lenders allow this, some states and banks regulate the number of advance loans a person can hold.