Bravado, determination, and risk-takers are true descriptions of our armed forces. Their self-sacrificing nature and dedication on and off the battlefield inspire us. It is saddening to see veterans sometimes facing financial troubles at the end of their service due to over-mounting medical bills, educational requirements to secure a job post-retirement or to start up a new business.
Blue Star Families is an organization that conducts annual surveys to understand the current state of military families. The survey consists of 10,000 respondents and the results of 2018 revealed the following outcomes:
- 70% of the survey takers believed two incomes are vital for their family’s well-being.
- 30% of military spouses are unemployed and 56% employed spouses are underemployed due to regular deployment.
- Financial concerns due to military pay and benefits also ranked among the top 5 issues.
This presents a grave picture of the financial security of military veterans and their need to avail themselves of loans to consolidate their financial status and improve the standard of living of their families. To look at your options when opening a loan that is right for your needs, read on.
The U.S. Government has established special loan facilities catering to the needs of veterans. These loans may be broadly categorized as personal loans and business loans.
Personal Loans
A personal loan may be required to cope with any financial constraints faced by veterans or as a backup in case of an emergency within their family. Personal loans usually do not require collateral but may have higher interest rates and are known as unsecured loans. Another way to obtain a personal loan is through secured means by mortgaging your savings account. In the event of failure to pay back the loan, the bank would keep all the money stored in the savings account. You need to consider things like whether paying in installments works for you.
Various financial institutions provide loans with special terms to military veterans. Before selecting the best loan facility, veterans need to thoroughly research the terms and conditions of the issuing authority and choose whichever best suits their requirements.
Look to apply with a lender who provides the loan with the lowest interest rate and doesn’t charge origination fees. A few of the personal loan lenders for military veterans are listed below:
Offers unsecured loans to former and current military officials and their immediate family members starting from $2,500 with interest rates beginning at 8.99% for a period of 12 to 84 months. The interest rate applied will depend on the credit score of the applicant; those with strong credit scores could obtain loans at a lower interest rate, and those with a weaker credit score may have to pay higher.
A unique feature of the USAA is that it may issue the loan on the same day the application is placed.
Similar to USAA in terms of its audience, applicants may obtain loans for some time up to 180 months with interest rates ranging from 8.19% to 18%. The credit values are determined by the duration for which the loan shall be taken: $ 25,000 (61-84 months), $ 30,000 (84-180 months) and $50,000 (up to 60 months).
An online lending organization introduced by SunTrust Bank, providing a loan at rates ranging from 3.84% to 17.49%. They provide loans for a period of 24 to 144 months with a credit limit of $5,000 to $100,000.
Business Loans
Military veterans known for their grit and determination are well suited to run businesses of their own. Those who wish to start their own business after their end of service in the military and require the necessary capital can obtain help from any of the programs or organizations below.
This fund is meant for veterans who have been awarded a franchise through the IFA VetFran program, up to $10,000 in grants. UPS and Little Caesar are some companies that help thousands of military veterans own their own franchise via VetFran.
This portal is designed to help veterans to procure capital for starting a small business.
This is a 7-week program specially designed for women veterans and military spouses providing help on planning and obtaining loans for entrepreneurial ventures.
This bank offers financial assistance through several programs such as credit for veteran-women and minority-owned businesses.
- LendingExpress
Give financial loans to small businesses run by veterans, with at least three months of inception and a credit score of 500 points. They do not take annual revenue of the business into consideration when lending. Interest rates may vary from 6% to 50%.
There are many other options available for military veterans to choose from to consolidate their financial positions.
No matter which loans option you choose, first know if its right for you. It’s not a one size fits all.
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