An UK Payday loan is a small personal unsecured (ie you do not need to offer any collateral) loan, normally offered for a very short period.

You can usually borrow up to £1000 for a period that can range from one week to six months.

It is intended to offer the borrower an opportunity to meet unexpected expenses, including borrowers without bank accounts.

Banks will grant Payday loans for a wide range of reasons. Unlike other personal loans, the bank will not place much emphasis on the reason whilst deciding whether or not to lend.

Obtaining a Payday loan is a very fast process, as the lenders recognise that these loans are often for emergencies.

To obtain a personal loan you need to apply to a bank or other financier. Your application may be impromptu, or may be in response to an invitation from the bank, i.e. in response to their 'junk mail' offers. Either way, you must make the application to the lender.

You will be asked to supply details about your current income, commitments and liabilities on the application form, as well as the reason you need the loan. The lender will not normally seek an credit reference from a credit reference agency (CRA), as the amounts involved are normally quite small.

The bank will then consider and either accept or reject your application, based on this information.