Definition

A loan is a quantity of money borrowed to help you in certain situation. There are loans where you can get a big sum of money for example if you want to buy a house. In this case you will be asked for several requirements. Small loans consist of smaller amount of money and less requirements.

In the basic loan process a lender is providing a short-term loan to be repaid at the borrower next paycheck. It means the loan term is short compared with other loans. 

Is it a bad idea?

Some people say borrowing is the worst habit anyone can get. If someone is borrowing money for a luxury holiday it is right but we need to consider that life surprises us every day and some circumstances lead us to money problems. Fortunately such kind of problem can be resolved thanks to a big net of borrowers ready to help us.

Common reasons

There are many reasons why people use payday loans. In most of cases we need a fast injection of cash because some of the following reasons:

• Unemployment
• Cancel another debt
• Bad credit score
• Paying Bills
• Mortgage repayment
• Medical emergency