Payday Loan Vs Installment Loans – What is the difference?


Many applicants we speak to don’t fully understand the difference between these two types of loans. However, the differences are very simple and easy to explain as we have highlighted the features of each type of loan below:

Payday loan:

  • Short term loan – max of 30 days
  • Emergency borrowing or unexpected expenses
  • High interest charges
  • Sameday or instant payment option
  • Amounts of $50 – $600

Installment Loan:

  • Longer term loan, e.g 3 – 12 months
  • Generally for larger amounts
  • Lower interest charges
  • An alternative loan to a bank loan if you have a poor credit history
  • Amounts of $500 – $3000

If you require a loan and are unsure which type of loan would be best for you then please speak with us and we’ll go over the options available to you.