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 loansInstallment loansPayday loans
Legal statuslegallegalLegal in 27 states, with some restrictions in 9 states
Amounts$5,000 - $35,000$1,000 - $5,000$100 - $1,000
Terms6 - 60 months6 - 60 months14-30 days
RepaymentIn fixed arranged repaymentsIn fixed arranged repaymentsWith a next paycheck
Rates and Fees4.99% to 450% APR , 5% origination fee6.63% to 225% APR , 5% origination fee300%-750% APR, 10-15% fee for every 100$ borrowed
Collateral or guarantorNot needed in most casesNot neededNot 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 .