In reality, there are multiple reasons why someone would consider a short-term personal loan. You might be a student in need of urgent cash after the semester started. Or you may be working for an employer who defaults on the last paycheck, and you have outstanding bills to pay. Imagine your car breaks down out of a sudden, and you need to repair it quickly, or you have a medical emergency. These examples represent only a tiny portion of unanticipated costs that might press for a reasonably low loan amount.