Short-Term Loans

Short-term loans are cash loans that are issued by lenders, banks, pawnshops or credit unions for up to 12 months. Basically, such loans serve the circulation of capital and the current needs of clients (purchase of goods, education, treatment, repairs).

A short-term loan can be issued secured by real estate, a car or other valuable things.

Features of a short-term loan

Short-term loans differ from conventional banking products not only in that they are repaid for a short period. They require a minimum package of documents, and the application can be approved without providing a certificate of income.

In addition, short-term loans are issued at an increased interest rate, and their registration takes place according to a simplified scheme. It takes no more than 30 minutes to get a short-term loan.

Such a lending scheme has a big disadvantage – the lender is at great risk, and the risk “translates” into the amount of remuneration that falls on the borrower’s shoulders.

Application and terms of loans for a short term

Lenders put forward the following requirements for borrowers:

  • age threshold – 18 to 65 years old;
  • citizenship – US;
  • full legal capacity;
  • steady income (formal or informal);
  • no conviction for serious crimes (fraud, terrorism).

To get a loan, you will need an active email and mobile phone.

As for documents, MFIs request an ID (they need to be entered when filling out the application). If necessary, company employees may be asked to provide another identity document: medical policy, retirement certificate, military ID, etc.

Short-term loans can be borrowed for free. True, the borrowing period is calculated not in months, but in weeks or days. The loan amount is minimal.

Pros and cons of a short-term loan

A short-term loan has both positive and negative sides.


  • speed of deposit – from a few minutes to 3 days;
  • issuing funds to clients with any credit history;
  • the opportunity to get money for students, women on maternity leave, unemployed citizens;
  • minimum package of documents. Most often, an ID data is sufficient (for remote registration).


  • high interest rate;
  • small loan size;
  • short loan term.

When getting a short-term loan, there is a minimal percentage of refusals, which significantly increases the borrower’s chances of application approval.