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The loan requirements for payday loans are much less complicated than the requirements for traditional loans. This is important because this type of loan is designed to assist borrowers in need of quick access to cash. The loan application for payday loans is often very simple and only requires the applicant to provide basic information related to his identity, employment status and banking information. This information enables the lender to determine whether or not the applicant is capable of repaying the loan on the following payday.
Payday loans are typically not for a great deal of money and may be further limited by the borrower's income level. Most payday lenders limit the amount of payday loans and these maximum limits can vary tremendously. Some lenders may limit borrowers to $300 while others may allow a maximum of $1,500. It is also important to note some lenders may place stricter limitations on first-time clients as opposed to clients who have borrowed from them in the past.