Types of Military Loans

Military loans are not meant for everyone. Military loans—personal and otherwise—are meant specifically and exclusively for military personnel and their families. Military loans are available to both eligible active-duty military members as well as career-retired veterans. Further, military loans are available to members of each of the five sectors of the United States Armed Forces, including the Army, Navy and Air Force.

Generally speaking, military loans are viable financial options to military personnel and families because of their generally low-interest rates as well as the fact that for most members, qualifying and eligibility is usually not a problem, the application process is fast and easy, and approval is almost guaranteed for members in good standing.

Of course, income and credit are also major determining factors. However, most active-duty military members have a guaranteed stable and steady stream of income, lowering risk of loan default, which enables quick approval for military loan applicants.

There are many different types of military loans. First of all, there are particular military loans based on what sector of the military you have worked in or are currently involved with. There are Air Force loans, Army loans, Navy loans, Marine loans and Coast Guard loans. While you can find general military loans, it’s generally a good idea to stick with the loan type offered for your particular section of the Armed Forces. If you work in the Navy, for example, it just makes sense to apply for a Navy loan.

Military loans can also differ in their amounts as well as terms and conditions. Loans can vary in amounts from $500 up to $10,000. Some loans will have to be paid off sooner than others; some monthly payments are higher than others; some loans have higher interest rates than others.

Military loans also differ depending on what you want the loan for. For example, there are personal loans for your own use and spending, car loans to buy a new car, mortgage loans for a new home, and other military loans for home or car repairs, vacation and debt consolidation.

There are also military loans geared toward active-duty members, as well as loans meant for career-retired veterans. For example, VA (Veteran Affairs) loans are low-interest mortgage loans for eligible retired veterans to purchase, build, renovate or refinance a home.

Finally, another type of military loan is a payday loan. Payday military lenders provide short-term, often high-interest loans. While payday loans, especially as lenders are accused of targeting military personnel, are highly controversial, the reality is that they fill a need and can be helpful short-term solutions to unexpected expenses and other financial reasons for those in the military.