The ultimate goal of any kind of loan is to meet the financial requirements
. The common requirement for any kind of loan is that the individual must be an employee. The loan can be a secured one or unsecured. The interest rate will depend on the tenure of the loan and the amount of risk involved in it. The repayment schedule can be devised according to the borrower's potential. So what is the difference between bank and payday loans? There are several complicated procedures to be carried out in order to obtain a bank loan. Every bank will have to abide the Central Bank regulations while offering the money. Mostly, people prefer to have bank loans if their amount of money required is lump some and the tenure is to be scheduled on a long term basis. There can be lots of negotiations taking place while taking a bank loan.It can be taken to meet the long term financial requirements. There are strict rules to be followed and the amount of money borrowed is usually higher. Payday loans are usually loans offered on a short term basis preferably for less than one month. The loan amount should be repaid on the date of next payday. It involves a higher rate of interest. The time period taken to grant the loan is usually few hours. Online payday loans can be offered instantly and the repayment will be usually collected by the lenders by debiting your bank account that you have specified. The loan amount would be highly dependent on the salary drawn. These loans can be adjusted and extended if the loan amount cannot be repaid on the scheduled dates. Any financial institution might offer the payday loans. Even these institutions are regulated by the Central Bank's regulations.