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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