A payday loan company is such a financial institution that provides short term loan at high interest rates.
What is a financial institution?
An institution that is generally involved in providing credit and loan facilities and also accepts deposits as its two primary functions is known as a financial institution.
A payday loan is such a financial institution, which mainly deals with providing non-collateral advances to its customers for a short period. The interest rates charged by such financial institutions are very high.
Hence, a payday loan institution is a financial institution that will issue a high interest rate loan in the above regard.
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