Cash crunches are not unusual. What do you do if you need money between paydays? The answer is simple. Go in for a money loan, which is known by different names like payday loan and post-dated check loan.

Anyone who is eighteen years old can avail of this facility, provided he has a bank account that is active for at least three months and has a regular monthly

pay in to that account.

In simple terms, the lender takes a post-dated check that includes his fees, advances the money and recovers the loan from the next paycheck deposit.

Usually there is no credit verification. If the borrower needs to roll over the credit, he can do so for up to three months. Within that time, the loan has to be repaid but a fresh loan can be taken. For each extension, there would be additional fees.

Electronic processing is normally used. The application and the check have to be faxed to the lender. There are no-fax advances as well. The money is posted in the borrower's bank account electronically within twenty-four hours, provided no holiday intervenes.

A number of people are involved in this business. The fees, terms and maximum amount that can be advanced differ from lender to lender.

The main negative aspect of money loans is the excessive cost. The annual percentage rate (APR) is comparatively high. Then there is the risk of the

borrower getting into a vicious circle unless the need to avail of a money loan and the repayment capability are carefully assessed. Local on-profit organizations often give free guidance.

Money loans are for emergencies. Use them only if it is essential.