What is a Short-Term Loan?

A short-term loan is a type of loan that is typically repaid within a short period, usually ranging from a few weeks to a year. These loans are designed to provide quick access to funds and are often used for emergency expenses or to cover temporary cash flow issues. Common types of short-term loans include cash advances, installment loans, and lines of credit. They generally have higher interest rates compared to long-term loans, reflecting the convenience and speed of access to funds.