What is a payday loan?
A payday loan is a short-term credit product generally designed to address a temporary cash requirement. Product structure, amount, tenure, interest, fees and eligibility depend on the applicable lender and loan agreement.
When might people explore one?
Borrowers may consider short-term credit for an unexpected bill, urgent household repair, temporary cash-flow gap or another permitted personal expense. Borrowing should be based on the ability to repay on time.
What should you review?
- Loan amount and tenure
- Interest rate and Annual Percentage Rate (APR)
- Processing and other applicable fees
- Total repayment amount
- Repayment date and method
- Prepayment conditions
- Lender identity and grievance channels
Before you accept
Read the applicable Key Fact Statement and loan agreement. The final offer may differ based on eligibility and lender assessment.