While a payday loan's exact definition is ambiguous, it is typically a small, expensive loan with a short repayment period, usually for $500 or less.
Many states have a cap on the size of payday loans, and the loans are for relatively small sums. The typical borrowing limit is $500, but there are also limitations above and below this figure.
On the borrower's following payday or when money is obtained from another source, like a pension or Social Security, a payday loan is often repaid in a single payment.
You typically have two options for paying back a loan: either you write a post-dated check for the entire amount, plus costs,
or you give the lender permission to electronically deduct the money from your bank, credit union, or prepaid card account.
Payday loans are frequently designed to be repaid in a single lump sum.Payday loans can occasionally be set up so that they must be repaid over a longer period of time in installments.