What is a Personal Military Loan?

a military father gives his daughter a piggyback ride

A personal military loan, often referred to as a military loan, is a type of financial product designed for active-duty military personnel, veterans, and sometimes their family members. These loans are typically offered by banks, credit unions, and specialized financial institutions, and they come with features and benefits tailored to the unique needs and circumstances of military members.

Here are some things to know about personal loans for military members:

Lower Interest Rates: Military loans often come with lower interest rates compared to traditional personal loans. Lenders may offer these favorable terms to support and thank military personnel for their service.

Flexible Terms: Military personal loans may offer more flexible terms, such as longer repayment periods, to accommodate the financial needs of service members. This can make it easier to manage loan payments on a military salary.

No Collateral Required: Many military personal loans are unsecured, meaning they do not require collateral (such as a car or house) to secure the loan. This means that borrowers don’t have the risk of losing valuable assets if they are unable to repay the loan.

Fast Approval: Some military loans offer expedited approval processes, allowing service members to access funds quickly in case of emergencies. If you’re a current Armed Forces Bank customer, you could access funds in as little as a few hours.

Support Services: Lenders that specialize in military loans often provide additional support services, such as financial counseling and assistance, to help military personnel manage their finances effectively.

Exclusive to Military Members: These loans are typically only available to active-duty military personnel, veterans, and sometimes their family members, so they are not accessible to the general public.

It's important to note that the specific terms and eligibility criteria for personal military loans can vary depending on the lender and the country's regulations. Service members should carefully compare loan offers and consider their unique financial situations before deciding on a personal military loan. Additionally, individuals should be cautious of predatory lenders that may take advantage of military personnel, so it's essential to choose reputable financial institutions for these loans.

Interested in learning more about Armed Forces Bank’s military personal loan? Learn more about our Access Loan here.

Subject to credit approval. Restrictions apply. Annual Percentage Rate is based on credit score. Only one personal loan allowed to any borrower at any time. Loan terms are based on the loan amount. Origination fee applies. Demand deposit relationship required. Refinance applicants must qualify for a minimum of $250 in additional cash for approval.

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