There are many reasons why you may be considering taking out a short term loans. Maybe you need to pay for an unexpected bill and do not quite have enough cash to handle the expense. Or you could want to begin on a home improvement project that you have been planning for several months. Regardless of how you are going to use the money, a short term loan can help you get the money you need. You can get different kinds short term loan from several sources. One kind of loan that matures very quickly and comes with high interest rates is a payday loan; they are issued by lending agencies over the Internet or in a lending center. Some short term student loans can be gotten through the financial aid department of certain colleges. A lot of folks use banks to get their short term loan. There is a lot of variety in the loans banks give; they can last as long as 3 years or mature as quickly as 60 months. Different banks have different types of loans, so do not forget to ask about your options in a variety of banks. Banks may request that you provide collateral in order to obtain your short term loan. While a small loan may not demand any collateral, a loan for extensive funds probably will. You can expect that any bank or lending institution will review your credit history and credit score before deciding whether or not they will issue you a loan. The bank may also ask you to show evidence that you are gainfully employed, like your recent paystubs; this allows them to confirm that you will be able to pay back your short term loan according to the payment schedule they set up. You may have heard some negative talk about short term loans, usually in relation to payday loans, but the benefits of these loans are quite clear. Obtaining a short term loan to help you handle the costs of a new project or unexpected expense is a good plan that, when planned for properly, makes good financial sense.