What are the differences between installment loans and payday loans?

For a payday loan, the borrower usually pays the original loan amount plus a fee at the time of their next pay date. These loans typically have higher interest rates than installment loans. Because of the higher interest rate and the fact that the loan is paid in a single sum, the maximum amount for payday loans is normally lower than that of installment loans. Payday loans are offered in amounts from $100 up to $1,000.

Installment loans, on the other hand, are distinguished by a series of payments and they typically have lower interest rates than payday loans. Amounts for installment campaigns may range from $1,000 up to $35,000.