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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.
Short-term loans that require payment in less than one year are classified into an account called Short-Term Loan Payable. For example, on August 10, 200X The Toy Company received a $7,000 short-term loan (1 year) from a local bank. The loan is considered a current liability because it's due in less than one year.