What is the difference between Short Term and Long Term Loans?

Short Term Loans are loans that need to be repaid in short period of time. It typically take up to one year to repay them.

Long Term Loans are loans that need to be repaid over a longer period of time, anywhere from years to decades.

Another crucial difference is the actual loan amount.

With Short Term Loans, the amounts tend to be smaller, since the time-frame to repay them is also smaller.

Long Term Loans allow for larger sums, since the repayment period is larger.