Payday loans are short term loans where the repayment is linked to the payday of the borrower. Lender hold the check until the next payday of the borrower and does not wait for the whole year to get the payment. Borrowers would write a check for the amount borrowed plus the additional finance charge and lender can receive it as cash.

Payday loan can also be rolled over to the next pay period in case the borrower is unable to …