Did you know that interest rates for Payday Loans are greatly significantly higher than personal loans issued from the bank. The reason why these payday loans are high is because they are a business. Payday loan companies give out loans with low specifications because they want as many people to take their loans as possible. The more people take their payday loans, the more money they make from their high interest rates. After all it is a business. People still take these loans even if they know that their interest rate is high because first of all, it may be the only loan option they have (speaking of those who have bad credits) or they need money immediately because they need to pay off a bill that is due or some other important reason. With responsibility and careful planning, taking a payday loan will not back fire due to the high interest rate.