What is an STL in banking?

Written by Editorial Team | Last Updated: August 2026

In commercial banking and corporate finance, an STL stands for a Short-Term Loan, which is a specialized credit facility extended by a financial institution to businesses or individuals with a brief repayment tenure, typically ranging from a few weeks up to one year. Companies utilize short-term loans to cover immediate seasonal working capital deficits, finance temporary inventory expansions, bridge cash flow gaps, or manage urgent operational expenses without committing to long-term debt liabilities.

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