English Lexicon

Payday loan

/ˈpeɪ.deɪ ˌloʊn/
nounCEFR B2 (Upper)Top #4500 frequency
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Comprehensive Definitions & Senses

2 senses
As noun
  1. 1

    A relatively small amount of money lent at a high rate of interest on the agreement that it will be repaid when the borrower receives their next wages.

    "Facing unexpected car repairs, she unfortunately had to resort to taking out a payday loan."
  2. 2

    Any short-term, unsecured cash advance marketed as a quick financial fix for immediate liquidity issues.

    "Regulatory bodies have increasingly scrutinized payday loans for trapping vulnerable consumers in endless cycles of debt."

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Antonyms & Contrasting Words (1)

Linguistic Origin & Historical Etymology

The term combines 'payday', originating from Middle English elements referring to the day on which wages are paid, and 'loan', derived from Old Norse 'lán'. Emerging heavily in the late 20th century, it describes short-term, high-interest borrowing designed to bridge a borrower's financial gap until their next paycheck.

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