The credit union gave me a short-term revolving loan. Why?

This is a common practice in bank loans for two reasons: 1, I don't trust you, shorten the term, and check your credit degree through maturity behavior. Historically, I am used to short-term loans, which can get quick results and repay the principal and interest at maturity. 3. The customer base managed by the business personnel of credit cooperatives is large and scattered, and the single amount is small, with many households and scattered distribution, which brings great inconvenience to post-loan management. In this way, the loan risk is reduced in stages, rather than post-loan management. The shorter the term, the fewer variables and the lower the loan risk.

4. Do not rule out that you may have misunderstood. The term you think is two years, but it is actually the term of credit extension, not the term agreed in the contract. Under normal circumstances, credit cooperatives issue loan vouchers to retail customers, giving credit with a certain period and amount, which can be used with the loan, with the total amount controlled and recycled. However, loan contracts generally need to have a clear purpose, duration and loan type. Moreover, the contract loan term or loan type stipulates that it is a short-term revolving loan, so your loan term can only be within one year.

Financially, it is usually agreed that 1 year is short-term, 1 to 3 years (or 5 years) is medium-term and 5 to 20 years is long-term. In lending, six months, one year, three years, five years, ten years and thirty years correspond to different benchmark interest rates and loan products. Once the short-term loan is confirmed, it can only be within one year. The medium and long term can be more than one year.