In today’s world, there are a number of loans available in the market. The person can check out the best one for them and avail them. The two which is most recommended is bank loan and same day payday loans. Most of the people get confused between them; still, there are a number of factors which differentiate them fully.
• Amounts – the bank are the one which let the person to get the loan of higher amounts and on the other hand payday loan are only capable of providing the small amount loan to the hirer. The amount can vary from $300 dollar to $1000 dollar.
• List of terms – a borrower can get loan from the bank for long-term period as well; the period can be up to years. On the other hand, the time-period period provided by others is minimum up to 2 weeks and maximum up to one month.
• Installment period – the bank loan can be repaid in the installments. The person can fix the installment amount according to their income. On the other hand in payday loan amount can’t be repaid in installments, the borrower needs to pay it all once.
• Interest rate – the loan provided by the bank has less interest rate as compared to the interest rate of payday loans. In payday loan person need to pay $75 interest for the amount of $500, sounds quite fair? Well, no because the time period is less, person needs to pay it for using $500 for a month.
• Time-period – it takes quite a time for the person to get the bank loan, on the other hand, payday loan are quickly available. Just apply for it and the very next day you will be getting the money.
It is quite clear from it that how both types of loans are different from each other. Needy can avail the one, according to their specifications.