New Delhi, Feb. 28 -- For Indian working professionals who need money in a hurry, payday loans can be one of the easier solutions. This short term loan offers immediate availability for liquid funds until your next pay check. Therefore, it is important to understand what a payday loan is, how it works, and what you should be careful about before applying for one.

A payday loan is a short term, unsecured loan to address urgent money requirements until your payday comes back. It is an advance on wages, and the loan amount can be proportional to your wages. Payday loans are characterized by their shortness, i.e., between two weeks and a month or until your next payday.

You can obtain a payday loan from a lender branch or on the internet. Y...