Describe the two types of loans available, and explain how they are different. (Site 1)

Loans are money received from outside and its been paid back based on the agreement of the borrower.

Type

Personal loan - This loan can be received from personal bank or union. They can be used for anything as proposed by the owner. It is given based on personal income and it is been paid gradually. It ranges from a few hundred to thousand.

Payday loan - It is short term loan, a personal check is drafted to include how much is to be borrowed and how much interest will be paid. The loan is being paid immediately and the request check is kept with the lender of the money until the money is refunded. Interest are being paid once