Military Payday Loan

Military Payday Loan

The military personnel of a country are responsible for safeguarding it.  The government compensates them well and also takes care of them after retirement by providing pension.  But they have families and needs just like ordinary people and there are times when they need that extra cash.

They can of course take care of unforeseen expenses by overdrawing their account but chances are that they have already done that and the fees charged by banks are very high.  There may arise situations when they have issued checks for payment and have realized too late that they have insufficient funds in the account.  If funds are not arranged for immediately, the checks will bounce inviting hefty fees and even legal hassles.  A military payday loan is the best option in such situations.

What is a Military Payday Loan?

A payday loan which is issued to military personal to be repaid within 14 days or the next payday in a lump sum or in installments over successive paydays is called a military payday loan.

What is Unique about a Military Payday Loan?

A military payday loan has a unique feature which other normal payday loans do not have – strict regulation by the government.  The government does not want its military personnel to be exploited by unscrupulous payday lenders who left to themselves would charge very high fees for military payday loans.  The government regulates not only the fees which include interest and processing charges but also the loan amount ceiling and the terms of a military payday loan.  It does not want the people of the military to get embroiled in debt.  So borrowing a military payday loan is a tad difficult compared to other payday loans especially if the amount is large.

Features of a Military Payday Loan:

  • The loan applicant should be above 18 years and should be serving in the military.
  • He should have a checking account.
  • He need not submit his salary statement.
  • The lender will not check the applicant’s credit history.  Even a person with a background of bad credit can apply for a military payday loan.
  • Previously, a person who wished to borrow a military payday loan had to call the lender and fax the required documents.  But with the advent of online lending, the entire loan process –loan application, approval and even deposit of money - happens via the Internet.

The Borrower Should Keep the Following Points in Mind when Taking a Military Payday Loan:

  • Does he really need to spend that money right now or can he postpone or even avoid that expenditure or purchase?
  • If he does borrow, does he have the capacity to repay the loan?
  • Is he making a habit of taking a military payday loan whenever he needs money?
  • If yes, he has to budget his expenses whereby, he will spend only from his income.  He would have to cut down on all frivolous expenditure.

A military payday loan is to be taken only in an emergency.  It is the last resort when there is urgent need for money.  It is not to be considered as a regular source of money.