A military personal loan is a personal loan which is available to an active duty member of the military or to someone who has retired and received an honorable discharge. Many lenders offer military personal loans, and members of the armed services can enjoy a number of advantages by using loans tailored to military members, rather than generic personal loans. Military members can get information about lenders which may offer them loans through finance offices, organizations which assist members of the military, or directly from lenders.
Like other military loans, a military personal loan has some unique characteristics which make it different from an ordinary loan. Typically, the interest rate is lower than that of a conventional loan, and the repayment terms may be more forgiving. For example, monthly payments tend to be smaller, and repayments may be suspended without penalty during situations such as active duty deployments or periods of disability.
To qualify for a military personal loan, it is necessary to demonstrate that someone fits the definition of an active member of the military, member of the reserves, or fully retired member of the military. In addition, the applicant will have to provide financial information which will be used by the lender to determine whether or not the applicant is a good candidate for a loan, and the maximum loan amount which will be authorized by the lender. Since the military tends to be meticulous about financial documentation for its members, assembling the supportive paperwork for a military personal loan is often very easy.
A personal loan can be used for a wide variety of personal expenses, and the total amount of a military personal loan can vary. People who receive such loans may want to remember that they do not have to accept a loan at the highest authorized amount. If they only need a little bit of money, it may be a good idea to take out less than the full amount. Members of the military may also opt to use the favorable interest rates provided with such loans to take out a loan and use the funds for investment, although this should be done with care to avoid creating an uncomfortable financial situation.
Members of the military should also ask lenders about other types of loans which may be available to them by request. Military loans for cars, houses, education, and other types of expenses tend to have better interest rates and more favorable terms than generic loans available to civilians.