There is no standard definition of short-term loan, but generally, it’s a personal loan with short repayment terms. A term is the amount of time you have to repay your lender, and you choose it before the lender finalizes your loan. Sometimes, you can refinance a personal loan after the fact to make your term longer or shorter.
Short loan terms can range between 12 and 36 months, though they may be even shorter depending on the lender and type of loan. Short-term loans may also come with higher minimum monthly payments, but you’ll pay less interest than you would with long-term loans.