A payday loan is a short-term loan typically repaid in a single lump sum on the customer's next payday, often along with a fee. The balance can be renewed, or rolled over, if it is not repaid in full by the due date.
A payday loan is a short-term loan structured to be repaid in one payment on the customer's next payday, commonly within two to four weeks. The customer typically provides a postdated check or authorization for an automatic withdrawal, and the lender charges a flat fee for the advance. If the customer cannot repay the full amount on the due date, the loan may be renewed, extended, or rolled over by paying an additional fee, which is known as a rollover. Payday loans are regulated differently from state to state, and some jurisdictions limit or prohibit them. An installment loan, which spreads repayment over a set schedule, is a commonly cited alternative.
