Personal Loans for the Military and How They Work

a soldier speaks with a banker about a personal military loan.

Written by:

Back to blog

Welcome to the world of military banking, where financial security meets strategic planning. Are you ready to dive into military personal loans? Let's navigate this terrain together and uncover everything you need to know. In this guide, we will discuss how personal loans work, where to find the best options tailored to the military community, and tips for securing the right loan for your needs. Let’s begin!

What are Military Personal Loans?

At its core, a personal loan is an unsecured loan offered by financial institutions such as military banks, credit unions, or online lenders. Unlike secured loans, which are backed by collateral like a house or car, personal loans are approved based on your creditworthiness and ability to pay it back later. This makes them accessible to a wide range of borrowers, including those who may not have assets to offer as security. Whether you're an enlisted service member or a veteran, military loans can provide the financial support you need without requiring you to put any of your assets on the line.

For further reading on personal loans for military members and their families, SEE ALSO:

How do Military Personal Loans Work?

Alright, troops, let's break down how military personal loans operate. The process of getting a personal loan typically begins with the borrower submitting an application to the bank. This application will ask for details about your financial situation, employment status, and credit history. Then, the bank will complete a credit check to evaluate your creditworthiness and set your loan terms.

Once you get the go-ahead, it’s time to crunch the numbers. One of the most critical factors to consider is the interest rate. Some loans come with fixed rates that remain constant throughout the loan's term, while others have variable rates that change with market conditions. The Annual Percentage Rate (APR) gives you the complete picture of your loan's cost, including both the interest rate and any additional fees.

Personal loans for the military come in various sizes and terms, depending on the lender and your financial situation. Loan terms determine how long you will be repaying the loan and your monthly payment amount. Generally, a longer term means smaller monthly payments.

MISSION TIP: Make sure to thoroughly review the loan agreement to understand all the details, including any origination fees or prepayment penalties. Knowing the ins and outs ensures there are no surprises down the line!

Best Personal Loans for Military Members:

Personal loans aren’t just a quick fix; they are a tactical tool for achieving goals and handling life’s unexpected challenges. They offer flexibility and accessibility for a variety of financial needs. Whether you are covering medical expenses, tackling a PCS move, or consolidating debt, a personal loan from a military bank can give you the help you need, exactly when you need it.

The best personal loan for military members at Armed Forces Bank is called the Access Loan, featuring:

Borrow between $250 and $15,000
Fixed terms and rates that let you budget confidently
Automated payments to stay on target
Easy application process for quick approval

Access Loans from Armed Forces Bank are a great choice if you have little or no credit history or less-than-perfect credit. They cater to individuals who are active duty, veterans, or military family members by offering flexible terms, competitive rates, and personalized assistance to meet their unique financial needs.

How to Get a Loan in the Military:

Ready to get a military personal loan? Look no further! Existing clients of Armed Forces Bank can apply for an Access Loan in just minutes. If you’re new here, let us be your financial ally! New clients can first create a checking account with our bank, then apply for the Access Loan. It’s that easy!

Member FDIC

Subject to credit approval. Restrictions Apply. Direct deposit relationship required. Origination fee, 10% or $100 whichever is less. Annual Percentage Rate (APR) is based on credit score. Only one personal loan allowed to any borrower at any time. Loan terms are based on the loan amount.

Back to blog