The valor and dedication of the armed forces in the United States is indeed awe-inspiring. How we treat these brave men and women reflects our appreciation of their important duties. Thus, as part of the recognition of their service, the military offers a variety of loan plans to assist service members in times of financial hardship. One of these loans is called a military personal loan. In this post, we will compare and contrast military loans with payday loans to help you decide which is right for you.
Military Loan Facts
The type of military loan for which you qualify depends on your branch, or whether you serve in the Marines, Air Force, Navy, etc. For the most part, the loans of the various branches are the same with only minor exceptions. Military personal loans allow service members to borrow anywhere from $500-$10,000 with repayment terms ranging from six to 36 months. Clearly, military loans allow borrowers to qualify for larger loans and have a longer repayment schedule than typical payday loans.
Benefits of Military Loans
Compared with payday loans and other types of lending products available to civilians, military loans have several distinct advantages. Some of the benefits include:
- Low interest rates
- Streamlined application & approval process
- Expedited delivery of funds
- Very accessible
- Do not affect credit
Military Loans vs. Payday Loans
Almost every benefit offered by military loans can also be attained with a payday loan. Specifically, payday loans have minimal processing time, fast delivery, are not credit-based, and are very accessible to virtually all borrowers. Both military and payday loans are also offered online, which makes them even more accessible. The main difference between the two is the interest rates. While military loans come with exclusive low rates not available to the general public, payday loans tend to have rather high APRs. Aside from this difference, the purpose and uses of the two types of loans are essentially identical. You can use either type of loan to pay off small debts, pay for gas, or make home or auto repairs, for example.