Overnight loans are also known as payday loans, short term loans, or cash advances, and are intended as short term loans with high interest for small amounts of money. overnight loans (Aspect Online) are generally not provided by banks and similar financial institutions, and are instead provided by dedicated payday lenders and related companies.
Overnight loans and similar products generally work with an annual percentage rate (APR), which is tightly regulated in some jurisdictions. However, it is important to note that the interest rates involved in overnight loans are generally much higher than standard loans, so it is important to be careful.

Overnight loans do fulfil a need in society, generally as a way for people to access small amounts of money for limited periods of time. For example, someone might borrow a couple of hundred dollars and pay back the money when they are next paid. The demand for overnight loans is also linked to the low level of documentation that is needed, and the ability for people with bad credit history to access these services. In some places like pawn shops and similar retailers, it might be possible for people to borrow money with no documentation at all if they leave a security item.

The basic process involved in an overnight loan consists of a customer making contact with a lender, the lender checking the employment and income details of the potential borrower, and a contract then being drawn up to meet the expectations of both parties. Overnight loans are generally required to be paid back in a short period of time, which may vary from between a few days to a few months. While extensions to this time period can be applied for and given, it is important to note that the high rate of interest charged for overnight loans can add up fast if loans are extended.