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Military Loans Help Service Families Make Ends Meet

By Louis Fabiano

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Published: 15Apr2010
Word count: 764
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As with many loans, there are costs that come with being indebted to a loan company or a bank. However, if you or your dependents are applying for a loan and your family is considered military, meaning either active duty or retired, then there are several lucrative opportunities available for loan seekers.

There are notable differences between regular loans and military loans. For instance, with a military loan, you may be able to bypass banks and lenders entirely and seek a loan at what some bases call a military base assistance office. These offices are set up to aid uniformed individuals with financial advice, as well as provide an abundant amount of information about how to obtain a loan, whether it be through the office themselves or through a reputable bank or lender.

In October 2007, the Department of Defense had a regulation-based act pushed through and imposed on military families and lenders alike, called the Talent-Nelson amendment. This act provided restrictions on certain types of loans, namely payday loans, anticipated tax refund loans, and car title loans, from being provided to military families at ridiculous Annual Percentage Rates (APRs).

The effect the Talent-Nelson amendment had on lenders provided military families with a safety net from having too high of APRs imposed onto them while trying to repay debts. The main restriction imposed on lenders is that of a 36 percent APR cap on loans to all service members and their dependents. This will help prevent service members and their families from being stuck with high monthly payments and never ending payment cycles with their debt.

While it may not seem like much, the 36 percent APR cap provided by the Talent-Nelson amendment for service members is quite a boon. At times, lenders would increase the APR on deployed member's loans, only for the borrower to return to find that they had massively increased debt accrued due to their lack of adjusted repayment amounts. Luckily, the Talent-Nelson act prevents service members from having to encounter this situation again by presenting a cap for lenders and banks.

There are many available sources for military personnel to obtain loans from. While lenders and banks are often viable sources of loans, these businesses can sometimes be hesitant to help military members because of a lack of credit history, in the case for new recruits. More recently, thanks in part to the Talent-Nelson amendment, military will have an easier time receiving loans from financial companies that specialize in providing aid to military,
Military-based financial aid companies are renowned for being able to provide loans to active duty and retired personnel, regardless of credit history. However, if a potential borrower has a good credit history, the loan company will typically be more than obliged to receive their business and provide them with a low interest rate, or a fixed interest rate loan. While using financial institutions with good reputations is one choice for larger loans, another idea would be to approach military offices for loans for immediate financial hardships. These military offices, usually found on base, will be willing to provide smaller loans to the active duty members to help them get back on their feet.

When searching for reputable companies to borrow money from take a look at companies such as Pioneer Military Lending. At Pioneer Military Lending, there are specialized, low interest rates on loans, typically smaller than credit card APRs, and the company is willing to work with their borrowers to create affordable payment plans.

When you specialize in one type of customer, it makes sense to keep them pleased if you would like to receive return business. This situation has boded well for Pioneer Military Lending, as they treat their borrowers quite well and work with them to maintain repayment capabilities. Putting their customers into a financial freefall would not benefit the company's reputation, or their financial lending record, so Pioneer Military Lending strives to maintain a good record with their borrowers.

A typical amount that can be borrowed from military institutions or even base offices will range from $500 to $10,000. This is just an average range of what military personnel find they would need to borrow for certain situations, such as buying a car or putting a payment on an apartment. While still having different career paths, civilians and military are very alike in the reasons that they take loans out in the first place. Both groups like being able to afford vehicles and maintain a debt-free lifestyle and will hopefully continue to do so with willing, good hearted financial institutions looking out for their customers.

Author and publisher since 1999. Articles, stories and commentary have appeared in national magazines and are published on the internet. Mr. Fabiano has also been a featured speaker at online publishing and affiliate marketing conferences in the US, Canada and Europe. I author the following consumer finance related sites and communities: Payday Loans Credit Cards

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