Short-term loans refer to loans with a loan term within 1 year (including 1 year). Short-term loans are generally used for the borrower's working capital needs in production and operations.

The currencies of short-term loans include RMB and major convertible currencies of other countries and regions. The term of a short-term working capital loan is generally about six months, with a maximum of one year; a short-term loan can only be extended once, and the extension cannot exceed the original term.

The loan interest rate is determined in accordance with the interest rate policy and loan interest rate floating range formulated by the People's Bank of China, and is determined based on the nature, currency, purpose, method, term, risk, etc. of the loan. Among them, the foreign exchange loan interest rate is divided into floating interest rates and fixed rates. The loan interest rate is stated in the loan contract, and customers can check it when applying for a loan. Overdue loans will be charged penalty interest as required.

The advantage of short-term loans is that the interest rate is relatively low, and the supply and repayment of funds are relatively stable. The disadvantage is that it cannot meet the long-term funding needs of enterprises. At the same time, since short-term loans adopt fixed interest rates, the interests of enterprises may be affected by interest rate fluctuations.