Short-term loans are loans that you can repay very quickly, often in a year or less. Many of these loans come with repayment terms of a few months or even weeks. Banks, credit unions, and online lenders usually offer short-term loans with varying amounts, interest rates, and terms.

Is loan short or long-term?

Generally, a loan under 12 months is considered a short-term loan. This can vary between products and providers but is usually where you see these loans fitting in. Terms over 12 months is deemed to be in the standard loans category or 'longer term'.

What are short term loans called?

A payday loan (also called a payday advance) is a small, short-term unsecured loan. These loans are also sometimes referred to as “cash advances,” though that term can also refer to cash provided against a credit card or other prearranged line of credit.