Military Loans – A Simple Guide
Like the civilians, even military personnel often require loans to help them make ends meet. Many lenders and loan companies offer special loans exclusively for military personnel. These military loans are not only more flexible, but they also have better loan terms. Military loans can be availed by not only the military personnel (in active service or retired), but also by their dependents and beneficiaries.
Military loans are offered exclusively to military personnel who are on active duty, personnel in the reserves, or retired military personnel. These loans are generally offered with good terms, and reasonable conditions. The interest rates offered are also quite low. Military personnel can choose between secured or unsecured loans, depending on their current financial situation. Secured loans require collateral. The basic criteria that the personnel need to meet include providing proof of their military employment, and a few other necessary documents. There are many options available to military personnel apart from the lower interest rates, including no extra charges or fees, or for various purposes.
Since military personnel are often posted to different stations, it can affect their ability to get a personal loan the traditional way. If, by any chance, a person serving (or having served) in the military has a lot of debts, he/ she also has the option of choosing a single loan for debt consolidation or military payday loans. However, it must be kept in mind that these military loans are offered solely at the lender’s discretion. Regardless of the kind of the military loan the personnel or veteran thinks to be most appropriate to cover his expenses, a lot of research must be done about the loan terms, as well as the conditions attached to it.
The military loans can specifically be availed by beneficiaries and dependants of military personnel, their caregivers, the personnel in the reserve and auxiliary services and personnel working in institutions that provide voluntary aid services. Often, even personnel posted abroad may apply for military loans. However, this may also particularly depend upon the loan company. The military loan amounts can be used for various personal purposes, such as the purchase of homes and cars, home renovation or repairs, or to pay outstanding bills. Some loan companies also offer specific loans for military personnel, such as tax-paid (or tax-free) vehicle loans and home loans.
Eligibility Criteria for Military Loans
Debt consolidation loans for military personnel are often the right choice for personnel struggling with multiple debts. The person can opt to take out a loan offered exclusively to military personnel to cover all the other debts. A debt consolidation using a military loan in particular can work out extremely beneficial to military personnel, especially since the military loan offers a better loan term and more flexible conditions. Payday loans are loans offered for short periods, until the borrower receives his next pay. Several payday loans are offered exclusively to military personnel. These payday loans for military personnel also have special considerations in terms of loan amounts and terms. Military payday loans usually allow personnel to avail loans up to one thousand pounds, for about two weeks to four weeks.
Different Kinds of Military Loans
There are plenty of loan schemes that are designed with the aim of helping military personnel. For example, the army offers personnel the Long Service Advance of Pay (LSAP), an interest-free loan of an amount equal to three months’ pay (up to eighty-five hundred pounds) to help the personnel make deposits on homes.