The ban will come into force on 13 July and will not impact mortgages, student loans, car loans, commercial loans and credit card companies.
A blog from Google reported: "We will no longer allow ads for loans where repayment is due within 60 days of the date of issue. In the US, we are also banning ads for loans with an APR of 36% or higher.
"When reviewing our policies, research has shown that these loans can result in unaffordable payment and high default rates for users so we will be updating our policies globally to reflect that."
Google explained that it is "vigilant" on ads for financial services because they are "core to people’s livelihoods and well-being".
Payday loan ads on TV have long been debated in the industry. The Broadcasting Committee of Advertising Practice launched a consultation on whether payday loan TV ads should face scheduling restrictions in October last year.
The responses are due to be announced in the next couple of months.