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A short term loan like what the name suggest is given for a short period of time say 1 month or maximum of 60 days. Being short term in nature, the rate of interest on the amount so borrowed is very high. On an average, one can avail at a maximum of $1500 dollars in short term loans and not more than that.
Group: Member. Posts: 11. In banking, a short term loan is for one year or less, a medium term loan is one to three years and beyond three years is considered long term loans. Nowadays, short term can mean even weeks because of payday loans and other loans with similar facilities.