The online payday loans can also be referred to as payday advance because it is a kind of loan that is secured by a person’s next pay check. Of course, one of the main requirements for a payday loan is that a person applying for this loan should be currently employed because the payment for this kind of loan is made through the person’s salary. Normal loans have interests and payday loans are no different. Although the interest rate on this type of loan may vary from company to company, it comes as no big surprise that the interest rate on this loan will be quite high. It may be pretty easy for people with full-time jobs to apply for this kind of loan, but make sure that you do not exploit the option available to you. Payday loans are to be applied only for emergency financial situations. Going in for this loan for unnecessary matters will only result in a loss for you as the interest rate on this loan is extremely high. Usually, this type of loan is to be repaid by your next payday so make sure that you apply for this loan only if you are confident of paying it back by your next payday.