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ShortTerm Loans refer to financial assistance obtained for brief durations, usually less than a year. These loans cater to immediate monetary needs, enabling borrowers to address emergencies or seize time-sensitive opportunities. The amount borrowed is typically smaller compared to long-term loans, and the interest rates can be higher due to the shorter repayment period. ShortTerm Loans fall under debt financing as they involve borrowing money with the promise to return it, often with additional interest.