What Are The Benefits Of Taking Out A Short-Term Loan? What is a short-term loan? Unsecured loans with terms ranging from 16 days to a year are referred to as " short-term loans ." A short-term loan of up to $2,000 is usually available. In comparison to other loans on the market, this can be processed and made available to you quickly. The loan funds can be used for anything, from paying bills to taking a vacaon. In Australia, non-banking enes and credit unions are among the many possible sources for a short- term loan. Lenders typically look at a borrower's credit history and financial stability when deciding whether or not to approve a short-term loan.