What is the difference between a Payday and Personal loan?
The main difference is in the amount , terms and way of repayment. Payday loans are given in the amount of $100-$1,000, Personal loans - $1,000-$35,000. The first are repaid in 14-30 days with the next paycheck, while the later – within a longer period of time in scheduled installments.
| Personal loans | Installment loans | Payday loans | |
| Legal status | legal | legal | Legal in 27 states, with some restrictions in 9 states |
| Amounts | $5,000 - $35,000 | $1,000 - $5,000 | $100 - $1,000 |
| Terms | 6 - 60 months | 6 - 60 months | 14-30 days |
| Repayment | In fixed arranged repayments | In fixed arranged repayments | With a next paycheck |
| Rates and Fees | 4.99% to 450% APR , 5% origination fee | 6.63% to 225% APR , 5% origination fee | 300%-750% APR, 10-15% fee for every 100$ borrowed |
| Collateral or guarantor | Not needed in most cases | Not needed | Not needed |
Personal Loans are characterized by long terms and rather high amounts of cash advance. If you need less than $5,000 but still with several repayments you can take an Installment Loan, in case if $1,000 is enough to cover your needs and you feel the ability to repay it with your next paycheck – apply for a Payday Loan .
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