A short term loans can come with a payment period of just a few years or even less time. By taking on a loan with shorter term limits, your monthly payments may be higher but your APR may be lower, and you may end up paying less overall than you would with a longer-term loan.

To help you shop for loan options, below are 9 short-term moneylenders and marketplaces that offer a minimum repayment period of 12 to 36 months.

What Is A Short-Term Loan?

A short-term loan is a type of loan that needs full repayment within a year or less, from time to time weeks or months. The best short-term loans offer low minimum APRs and a wide range of dollar volumes, and some lenders don’t charge origination fees to get a loan.

What Are The Best Short-Term Loans Online?

The best short-term loans you can get online from a direct lender are from LightStream, as the company has loan amounts from $5,000 to $100,000 and a payment period as short as 24 months. LightStream also manages the entire loan process, from reviewing applications to collecting monthly payments in each state. Most other short-term online loans only come from direct lenders in certain conditions.

How Can I Get A Short-Term Loan Quickly?

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How To Get A Short-Term Personal Loan

If you’re looking for a short-term personal loan, follow these steps to find a deal that’s right for you:

  1. Check your credit.Since personal loans are typically unsecured, lenders require good to excellent credit to qualify. Check your credit score with a credit monitoring service to know what you’re working with. You can also review a copy of your credit report from and dispute any reporting errors you find.
  2. Prequalify with multiple lenders.Compare quotes from at least three lenders to find the best offer. Prequalifying only takes a minute or two and won’t ding your credit score.
  3. Compare rates, terms, and other loan features.Look for a loan with the lowest annual percentage rate (APR) and an amount and loan term that fits your budget. The Forbes Advisor , personal loan calculator can help you estimate your monthly payments and long-term borrowing costs.
  4. Submit a complete application.Once you’ve found an offer you like, you can fill out the complete loan application. You may need to provide verifying documentation, such as pay stubs or tax returns. At this point, the lender will run a hard credit inquiry, which could temporarily decrease your score by a few moments.
  5. Receive your loan funds.Pretentious the lender approves your application, it will disburse your loan into your provided account. Read over your loan agreement carefully so you understand when payments are due. Consider setting up autopay so you never miss a bill.

Pros and Cons of Short-term Personal Loans

Before borrowing a short-term personal loan, the pros and cons are worth considering. Here are some benefits of opting for a short-term loan and some potential downsides to keep in mind.


  • Qualify for a better interest rate: Lenders may offer more competitive interest rates on short terms than on longer ones, even if the amount you borrow is the same.
  • Pay less interest over the life of your loan: Not only could a lower interest rate save you money on appeal, but paying your loan off quickly means less interest will accrue than it would on a longer term.
  • Get out of debt faster: By paid off your debt over a short period, you’ll say goodbye to those monthly payments sooner, keep more of your paycheck and have more funds to devote to other financial goals.
  • Boost your credit: “Amounts owed” is a significant factor in your FICO credit score. By paying off your loan swiftly, you can reduce your unpaid debt and may see an improvement in your credit score.


  • Lower loan amounts: While some personal loan lenders fund loans up to $50,000 or $100,000, they might set lower limits on short-term loans.
  • Higher monthly payments: Because you’re paying your loan off on a truncated timeline, you’ll have to make higher payments than you would over a more extended period. Ensure you can afford the monthly bills before opting for a short-term personal loan.
  • You may not be able to extend the terms if you change your mind: If you’re struggling to keep up with loan payments, the lender may not let you change your loan terms after you borrow. Do your best to confirm the times work for your budget upfront before you sign your loan agreement.