A private payday loan is usually always the case, as individuals can not easily get insight into the of other individuals. As a result, private lenders have no way of verifying the creditworthiness of the borrower, unless the lender shows proof of his income and a copy of his own record.

Usually, however, personal payday loans take place in a friendly environment, where the loans are insured much less. The payday loan, which is often only in relatively small size, should help the borrower usually only through a financial bottleneck, so friends, family and other acquaintances then tend to tend to issue a small payday loan – regardless of the creditworthiness of the borrower. The payday loan itself does not necessarily have to be secured in a loan agreement, whereby the amount and, above all, the relationship between the two persons is decisive.