Short-term personal loan
Short-term personal loan

Shot-Term Personal Loan or Long-term Personal Loan? Which One is the Best for You?

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When you’re considering on getting a personal loan, you most of the time have two options available. Short-term personal loan, or the other. Making a decision between these two choices can be difficult if you’re unfamiliar them. In today’s article, we’ll help you choose between short-term personal loan or just regular personal loan.

It’s important for borrowers to understand and consider the length of their personal loan over which they can borrow and then repay the money. Because if you decide on getting a short-term loan without knowing you can pay it as soon as the due date wants, you will find yourself in a trouble that’s hard to get out from.

What is a short-term personal loan?

Short-term personal loans are a type of personal loans in which borrowers requires to pay off the loan as soon as possible compared to regular personal loan. These sorts of loans most of the time carry high interest, and is only available on certain fintech lenders instead of banks like the sort of other loans you’d find.

As such, the decision on what to choose between short-term personal loan or regular personal loan becomes increasingly important since it can affect the borrowers’ life negatively if done incorrectly.

Just to put into perspective, short-term personal loan has a repayment period of under one year. Which of course can be dreadful if you’re considering getting a large sum of money from short-term personal loans lenders. Which in turn brings us to the question, when should you consider getting this loan?

When should you consider getting a short-term personal loan?

Borrowers that consider getting this type of loan are usually someone who’s in need of quick cash to meet unexpected expenses such as medical emergency, or car repair over a short period of time.

Read: Shot-Term Personal Loan or Long-term Personal Loan?

We’ve said it above already, but this sort of personal loan carries higher interest than usual, which in turn makes it unadvisable to take under most circumstances. Even more so with the very short loan term that comes with its name.

Some of the most predatory types of these loans are something like payday loans that often leave their borrowers in debt rather than financially stable. It’s very risky, as you can probably already tell.

That being said, we’re not discouraging potential borrowers from getting these sorts of loans in any way if their situation truly requires it, we’re just saying that most times there are better alternatives than putting everything on something as predatory as payday loans and short-term loans in general.

The pros and cons of short-term personal loans

Despite us ragging on getting these sorts of loans, there are still pros and cons attached to them, as it is with most things in life that we hope will be able to sway you one way or another from getting a short-term personal loan.


  • Very quick cash, as implied by the name
  • Comes with plenty borrowing options
  • No obligation to pay over several years which can be taxing on your mind


  • Higher interest and APRs in general compared to other types of loans
  • Obligation fees and charges may exist for most loans of this type.
  • Stricter limit on how much you can borrow
  • Doesn’t fundamentally fixes the problem of a bad financial situation.
  • Shorter periods on loan terms which again can be bad for you.

As you can see above, there are more cons compared to pros when you’re getting short-term personal loans. But, we’re not here to decide whether or not they’re worth it for you. Our job here is to inform the audience to help them make a decision with any bias.

But before finalizing on that decision, it doesn’t hurt anyone to take a look at the regular loan too and help decide whether they’re going to be worth taking a look or not for you.

Regular personal loans, what are they?

Regular personal loans are exactly that, they’re the sort of loans that’s available in most places including banks as long as you have a fairly decent credit history.

As the stark opposite to the loan we were talking about earlier, regular personal loans sometimes takes more than a year to repay through monthly payments to the lender.

Read: Reasons Why Instant Approval Payday Loans Might Not be the Best for your Emergency

But since this article is mainly focused on short-term personal loan and everything that that entails, we’ll keep this section short and lets you focus on more important things instead such as the pros and cons of regular personal loans.

The pros and cons of regular personal loans


  • Borrowers can borrow more compared to short-term personal loans
  • The interest rate will be lower for most of the time.
  • Many providers available
  • Available to most types of credit scores


  • Borrowers are committed to the loan for longer period of time
  • Extending the loan will increase the amount they have to repay
  • Obligation fees and charges

The Verdict

Now after comparing the two types of loans above side by side, there will of course be a verdict to make for this topic.

If borrowers require very quick money and shorter debt commitment, short-term personal loan becomes a highly valuable option to take, but always proceed with caution and calculate whether it’s possible for borrowers to repay the loan, or not.

And if borrowers don’t require the very fast funding that comes with short-term personal loan, then regular personal loan becomes a solid choice considering it’s cheaper, and less risky to take.

But as we’ve said above, we’re just here to give our two cents about these two types of loans. The decision, at the end of the day will lay on you, the borrowers’ hands. Whatever decision you make, just know that we’re here to help you consult.

That’s it for today’s article of which one of the two personal loans is the best for you. Thank you for reading this article and taking your time out of your day to listen to our two cents. We hope that they can help you solidify your decision, and we hope to see you again soon with another article involving loans and everything in between.