A payday loan is a high interest loan given to applicants on a short term basis.
Payday loans are usually repayable in full rather than in monthly installments.
The reason these loans are referred to as payday loans or wage day advance loans is that they are often sought by people who require money before their next pay day - hence the term payday loans.
Payday loan calculator
Use the payday calculator below to determine the charges based on any amount of payday loan up to £750.
How a typical payday loan works
- Apply for a loan amount and a repayment date.
- Check the repayment amount, this will include interest and fees.
- Complete an application form
- If your application is successful you can often receive the cash in your bank account as fast as 15 minutes.
- On the repayment date the full repayment is taken from your debit card
Payday loan example
An example of a payday loan is shown below. If you were to take out a payday loan of £100 over 28 days, you would pay:
- Loan: £110
- Repayment in: 28 days
- Repayment value : £100 borrowed + £25 interest and fees = £125 to repay.