Business and Personal Finance Dictionary

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• PAYDAY LOAN
  
  A payday loan is a small, short-term loan loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the and the . The borrower initially receives an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt.(typically up to $500) without a credit check that is intended to bridge the borrower's cashflow gap between pay days. Note, however, that the term cash advance can also mean cash provided against a prearranged line of credit such as a credit card. The loan is typically given in cash Cash usually refers to money in the form of currency, such as bills or coins. The word Cash is decendent of Tamil word,Kasu which meant currency. Cash can also refer to checks, money orders, cashier's checks, bank drafts, or traveler's checks. In all these forms, the term indicates the most liquid form of assets, which have a fixed value and can be easily converted to currency. "Cash pay" (as opposed to, e.g., stock options) would almost always be in the form of a check or bank deposit — but the employee can easily get cash per se from the bank and secured by the borrower's post-dated check that includes the original loan principal and accrued interest. The maturity date usually coincides with the borrower's next pay day. On the maturity date the lender processes the check traditionally or through electronic withdrawal from the borrower's checking account. Payday lenders typically operate small stores or franchises, but large financial service providers also offer variations on the payday advance. Some mainstream banks bank is to provide services related to the storing of deposits and the extending of credit. The evolution of banking dates back to the earliest writing, and continues in the present where a bank is a financial institution that provides banking and other financial services. Currently the term bank is generally understood as an institution that holds a banking license. As of 2001, payday lending is legal in Canada and in twenty-five of the United States. Elsewhere in the US, a payday lender may affiliate with an out-of-state chartered bank to conduct business.
  
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