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What are short-term loans, medium-term loans and long-term loans?
Short-term loan: a form of loan granted to enterprises by banks or other financial institutions in China with a term of 1 year (inclusive).

Medium-term loans refer to loans with a loan term of more than one year (excluding one year) and less than five years (including five years);

Long-term loans refer to loans with a loan term of more than 5 years (excluding 5 years).

First of all, distinguish the loan term. Generally speaking, short-term refers to one year, medium-term refers to 1-5 years, and long-term refers to more than 5 years. The specific methods may vary from bank to bank or from region to region. The loan interest rate is generally: long-term loan interest rate >; Medium-term loan interest rate > short-term loan interest rate.

After distinguishing the loan term, we can see why short-term loans are less than medium-term loans. Take 1 year short-term loan as an example. If 1 year is extended, the total loan period is 2 years, which has entered the medium-term loan scope. Therefore, the general short-term loan extension will be shorter.