What is a short term loan?
A short-term loan is a personal loan repaid over a relatively short period, usually 3 to 12 months. Through Dot Dot Loans, you can apply to borrow from £100 to £5,000, with available terms from 3 to 36 months.
For the same amount and rate, choosing a shorter term normally increases the monthly repayment but reduces the total interest. The important question is whether the repayment fits comfortably within your monthly budget.
How short term loans work
You borrow an agreed amount and repay it on dates set by the lender. Each repayment covers part of the amount borrowed plus interest. The lender sets out the repayment amounts and dates before you agree, and monthly repayments are usually consistent, although the final payment may differ.
If your application is approved, the lender pays the money into your bank account. Some lenders offer same-day funding, although timing depends on the lender, the time of approval and your bank.
What short term loans cost
The table below shows illustrative repayments at our representative rate over short terms. It is a guide only, and your own rate depends on the lender and your circumstances.
For loans that count as high cost short term credit, the Financial Conduct Authority limits the cost:
Short term versus long term
For the same amount and interest rate, a shorter term usually means higher monthly repayments but a lower total cost. The right choice comes down to what you can afford each month against what you want to pay in total:
Clear the balance quickly.
Spread the cost further.
When a short term loan makes sense
A short-term loan may be considered when you need a modest amount and can comfortably afford the higher monthly repayments. Examples might include an unexpected bill or car repair.
Compare the monthly repayment and total amount repayable before choosing a term. A longer term may reduce the monthly payment but usually increases the total cost.
Applying for a short term loan
You can get a quote in about two minutes. We search our panel for a potential match with a soft search, without any impact on your credit score.
Borrowing responsibly
Only borrow what you need and can comfortably repay. Look at the total amount repayable over the whole term, not just the monthly figure, and leave yourself a buffer in case your outgoings rise.
If money is already tight, free and impartial help is available from MoneyHelper before you take on new borrowing.
Sources and methodology
Regulatory information and external statistics are drawn from the sources below. Repayment examples are illustrations calculated using the representative rate shown. We do not link to other lenders or brokers. Where a statistic could change, we note when we last checked it, in July 2026.
Methodology: this guide is written in house by the Dot Dot Loans editorial team and reviewed by Paul Gillooly, Director of Dot Dot Loans, using published rules from the Financial Conduct Authority and figures from the sources above. It is general information, not financial advice. Representative Example: Borrow £1,000 over 18 months. 18 monthly repayments of £89.22. Total amount repayable: £1,605.96. Interest: £605.96. Annual interest rate: 59.97% (fixed). Subject to application approval by the lender. Not all lenders offer loans up to £5,000. Representative APR 79.5% (Variable). Any representative monthly repayment shown is for illustration only, based on our representative APR. Your actual repayments will be confirmed by the matching lender if your application is approved.