Short Term Loans Short term loans are lending instruments that come in various types and are offered to individuals, businesses, universities, and other institutions. They have a short maturity period, meaning that the loan has to be paid within a short period of time. The loan term is typically less than a year. With some short term loans, the period of maturity can be up to three years, but that depends on the borrowed amount and the terms of the contract signed by the borrower and creditor. Some colleges offer short-term financing to make it easier for students to finance their education. These loans have a short maturity period and have to be repaid in sixty days, again depending on the educational institution and the borrowed amount. The financial situation of students is also taken into consideration. Car title loans, auto title loans, or simply title loans are another type of short term instrument whereby the borrower can be granted funding in the range of $100 - $10,000, depending on the model and brand of the chosen car. The car title, in this case, serves as collateral for the loan. These loans are usually short-term and come with a higher interest rate than other types of credit. The creditor does not check the credit history of the borrower, with the one consideration being the condition and value of the vehicle. Most loans of this type are granted in fifteen minutes or less if the sum is around $100. The creditor verifies the collateral of the borrower and typically checks if he or she is employed or has another source of steady income. In terms of the loan amount, the majority of lenders will extend up to 50 percent of the resale value of the vehicle, although some may go higher than that. This sum is offered on condition that the car is paid in full, without resorting to current financing or liens. Most creditors will also require that borrowers get a full insurance of their car. Credit unions and banking institutions also extend short term loans to their clients. The maturity period is 60 to 120 days after the loan is granted. Some loans have terms of up to three years, depending on the bank’s regulations and the amount borrowed. This type of short term loans can be unsecured or secured. The application process takes longer if the loan is unsecured as the lender will have to check the borrower’s credit history. If the customer has an excellent or good credit history, it is not difficult to obtain a loan. Clients with poor or no credit history, however, have to provide collateral to get approved. As another option, they can apply for a secured credit card. Payday loans are another type of a short-term instrument that can be obtained online or from loan kiosks. These loans come with a high interest rate compared to all other loans. Creditors extend small amounts, in the range of $30 and $100. Some credit providers also offer loans of $1000 or more. Most borrowers resort to such financing if falling short of cash before the next pay check. Factors to consider when looking for short term loans include: credit limit, loan maturity, interest rate, late payment fees, and other applicable fees. It is important to make sure whether one’s income is sufficient to pay off the loan before applying for funding.