Are you aware of the payday loan? Maybe because it is comparatively new, not everyone knows about it. A online payday loans is a new system of money lending. Unlike the conventional loans, the payday loan is not provided by any banks, but provided by private companies. The payday loan system is different to the conventional loan in so many ways. A payday loan is offering a much less amount of money that can be repaid altogether at the end of the term, while the conventional loan offers more money with a specific repayment schedule. A lot of payday loan providers offer the online application service with a few requirements such as identification, a proof of employment, a bank account and an active phone number, while a bank loan requires much more. A payday loan application is not only simple but also quick. Approval usually takes no more than one day, while a bank loan may need weeks. One of the best features provided by the payday loan is the ability for the bad credit to apply because a payday loan does not need a credit check, while the conventional loan is the opposite. However, a payday loan maybe charging high interest rate to the borrowers, a much higher rate than the bank loan.