Military personnel who are currently or formerly a member of the military service can sign up for military loans. The advantage of military loan is that it offers favorable lending term to military members. However, the loan amount is usually much smaller than the amount you can borrow from a regular lender. The following are five types of loans that military members can apply.
1. Traditional Loans
Military personnel who have a decent credit score can qualify for a standard installment personal loan issued by a bank or credit union or online lender. These loans allow you to borrow a loan amount from $1,000 – $30,000 with a maximum term of 5- 6 years to repay. The interest rate that you repay will depend on the loan term and your credit score. You can use the loan for debt consolidation or other purposes you have in mind.
2. Active Duty Military Loans
Active duty military loans is for those who have been enlisted to join the USA armed forces. They understand that those on active service has less than perfect credit score. You must have 18 months or more remaining on your term to qualify for the loan. Active duty military loan has a lower interest rate and it can provide you with the fund you need to cover an emergency expenses.
3. Armed Forces Loans
Armed forces loan is designed for all ranks of military personnel in any US service branch. Retired military personnel can also apply for the loan. This type of loan allows you to borrow $500 – $10,000 and repay it in 6 – 36 months. The loans may be covered by a 15 days money back guarantee in case you change your mind and want to return the loan.
4. Bad Credit Military Loans
Bad credit military loans is designed for military personnel that have previously missed a few payments which causes their credit score to drop. This type of loan tend to have a higher interest rate but the most important thing is that it can help you to get the money you need. You will be able to build up your credit score as you make payment for the bad credit military loan.
5. Emergency Loans
Sometimes, the armed forces will create loan package to help military members that are facing emergency needs. For example, the bereavement loan offers loans of up to $1,000 for families of the deceased military member. Bereavement loan waives interest fees for the first 3 months and then charge a low amount in the rest of the loan term. Disaster Relief loans is extended to the military member and their families during a disaster. Convalescent loans offers up to $1,000 loan for those who have been injured in combat zones. Convaslecent loans waives interest for 6 months.