Payday loans or payday advance loans are loans that are given on short term basis to people to meet immediate expenses, against their future salary. The concept is such that the borrower gets the immediate financial gratification he needs and the lender against the loans gets a huge interest: usually 15% in two weeks. This is proves as an expedient form of income for both sides. Payday loans were in the traditionally were only provided by retailers but today are also provided by companies. The loans provided by  UK payday loans companies are online; this is just an electronic transfer that takes place via the internet.

It has become more popular due to less work and even lesser time in transfer of money. While, retail payday loans still thrive they have maintained their traditional form of lending and receiving money. The one and only safeguard that both companies and retailers keep are post-dated cheque. They serve as safe guard if the borrower does not return the money in the stipulated time. However, as beneficial it is to both sides payday loans are highly criticized wherever they are practiced.

They are looked upon as misusing the financial ills of another, to ones own advantage by charging enormous amounts of interest. Usually people who take payday loans are people of the low income group, who have few assets and no savings. These people take payday loans to meet problems and end up paying interest on these loans. This is one major criticism, stating payday loans drain the wealth of the already poor and do not let them accumulate money.