pay day loan is a type of loan which falls under the category of short term loans. in these type of loan the borrower is expected to pay the loan amount plus the interest accrued on the amount in one payment when his payday arrives.
usually the lending facility is allowed to take out this payment from the borrower's bank account with the authority of the financial regulatory body.
short term loans are loans taken out and repaid within a short period of time usually between one month to 1 year at maximum. payday loans are given to small startups and to individuals who might be in urgent need of cash at the moment and also have a good credit score.
