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How Does a Short Term Loan Compare to Other Loans?Those who are in need of money fast will usually wonder about a short term loan. Is it right for them? Those who seek out this type of loan typically only need to borrow a small amount of money and are often able to repay the loan rather quickly. These short term loans are generally referred to as payday loans because the borrower is required to repay the loan on his next payday. A payday loan usually has a repayment period of 10 to 15 days, but a short term loan may refer to any loan which has a relatively short repayment period. These loans are in direct contrast to other types of loans such as vehicle loans, which may have a repayment period of approximately two to five years and mortgage loans, which may have a repayment period ranging between 15 and 30 years.
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