Finance English
Banking

What is Payday Loan?

Payday Loan A short-term, high-interest unsecured loan designed to cover the borrower's expenses until the next payday; subject to specific regulatory controls due to consumer risk.

Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

How is “Payday Loan” Used in Practice?

Payday loans provide immediate cash but often carry high fees and interest rates, making them a regulated product in many countries to protect consumers.

Certification Exam Relevance

CFAACCAFRM

Who Needs to Know This Term?

  • Financial Analysts
  • Bankers
  • Traders

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Frequently Asked Questions

What is Payday Loan?

A short-term, high-interest unsecured loan designed to cover the borrower's expenses until the next payday; subject to specific regulatory controls due to consumer risk.

Where can I learn this term for free?

Termify is a 100% free professional English app that teaches Payday Loan and 4,071+ other industry terms with native pronunciation, IPA transcriptions and career quizzes. Available on iOS in 23 languages. No subscription, no credit card required.

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