Here's how a payday loan typically works:

• Application: To obtain a payday loan, you would need to fill out an application with a payday lender. This can often be done online or in person at a physical storefront.
• Verification: The lender will ask for certain information to verify your identity, income, and employment. They may require documents such as pay stubs, bank statements, or other proof of income.
• Loan agreement: If approved, you would receive a loan agreement outlining the terms and conditions of the loan, including the loan amount, fees, repayment date, and interest rate. It's essential to carefully read and understand the agreement before signing.

• Funds disbursement: Once you've agreed to the loan terms, the lender will provide the loan amount, usually through direct deposit into your bank account or by giving you cash.
• Repayment: On the agreed-upon repayment date, usually your next payday, the lender will automatically withdraw the loan amount plus fees from your bank account. In some cases, you may have the option to extend the loan by paying additional fees.

The interest rates for payday loans can vary depending on the lender, the borrower's creditworthiness, and the regulations in the specific jurisdiction. However, payday loans are generally known for their high interest rates, which can often exceed 300% APR (annual percentage rate). It's crucial to carefully review the terms and conditions, including the interest rate, before accepting a payday loan.

Regarding eligibility criteria, requirements can also vary among lenders. Here are some common eligibility criteria for payday loans:

• Age: You must typically be at least 18 years old (varies by jurisdiction).
• Income: You need to have a regular source of income, such as employment or government benefits. Some lenders may require a minimum income threshold.
• Employment: Many lenders require borrowers to have a steady job or consistent employment for a certain period.
• Bank account: You may need to have an active bank account where the loan funds can be deposited and repayments can be withdrawn.
• Identification: You'll likely be asked to provide identification documents, such as a government-issued ID, driver's license, or passport.