What is a Short-Term Loan?

Short-term loans can be a useful financial tool when used responsibly. At Real Finance, we believe that the key is understanding when this type of lending is appropriate—and making sure it’s affordable for you.

A short-term loan is typically a smaller loan amount borrowed over a short period—often weeks or a few months—to cover urgent or unexpected costs. This might include car repairs, medical bills, or essential household expenses. Unlike long-term loans, short-term lending is designed to bridge a gap rather than fund large, ongoing purchases.

Who Are Short-Term Loans For?

Not everyone has access to savings or financial support from friends or wh?nau. For many people, a short-term loan provides access to emergency funds when no other options are available. These loans can be a better alternative to overdrafts or credit cards, which often start with good intentions but may lead to ongoing debt due to revolving credit and minimum repayments.

Responsible Short-Term Lending

At Real Finance, we’re committed to responsible lending. We do not support the long-term use of high-cost credit that traps borrowers in a cycle of debt. Our goal is to offer affordable, transparent short-term lending—especially to our existing clients—when a genuine emergency arises. We follow strict affordability checks and ensure that every loan is fit for purpose. That means we may ask for updated documents to confirm a short-term loan won’t cause financial hardship. We take these obligations seriously to help our clients stay in control of their finances.

Avoiding the Debt Cycle

If you’re already juggling multiple loans or finding it hard to keep up with short-term repayments, it may be time to consider a debt consolidation loan. This involves combining your existing debts into one manageable loan with a longer term, helping you regain control of your budget and reduce the need to borrow again. By consolidating debt, you can free up money for everyday expenses—and keep short-term borrowing as a backup option rather than a necessity.