Military members have unique needs when it comes to loans and there are many unscrupulous businesses willing to take unfair advantage of those who serve our nation. Payday loan businesses, cash advance offers and pawn shops line the streets outside of military bases enticing soldiers, sailors, airmen and Marines with predatory loans with interest rates of 100% or higher. These outrageous programs lead many military loan seekers into bankruptcy.
Fortunately, there are a number of legitimate military loan programs out there that provide military personnel with loans designed for their unique needs at fair rates.

Let’s take a look at three programs that offer good opportunities for military loans:

Pioneer Military Loans

Pioneer Military Loans, a division of MidCountry Bank, offers specialized military loans designed to help servicemembers get out of debt, cover emergency expenses, or provide for other personal expenses. Many individuals use the Pioneer program as a military auto loan source. Pioneer Loans are available to all servicemembers, regardless of rank or service branch and can range in value from $500 to $10,000. These loans are repaid over a 36-month period and offer competitive interest rates.
The real value of Pioneer lies in their special-purpose loan programs. These include:

• Military Disaster Relief Loans are available to any military personnel living in a state or federal disaster area. These loans provide up to $1,000 interest-free for three months.


• Convalescent Leave Loans are available to any military personnel wounded in combat. They provide $1,000 interest-free for six months.


• Military Bereavement Loans allow servicemembers with a death in the family to receive up to $1,000 interest-free for three months.


• Military Help Loans provide an affordable alternative to cash advances. These one-time $500 loans are repaid in four equal monthly payments of $131.31, with a total of only $25.24 paid in interest and fees.

For more information, visit Pioneer Military Loans.

VA Loans

If you’re looking to purchase a home, the Veteran’s Administration offers mortgage guarantee programs designed to assist military members who might not qualify for traditional mortgages. Generally speaking, the program is open to all honorably discharged veterans with 90 days of military service. The program is also open to active duty personnel with at least 180 days of service.
The value of a VA loan is that the government will guarantee your mortgage payments to the bank that makes your loan. This makes you an extremely attractive mortgage candidate. If you’re interested in this program, read more about VA Home Loan Guarantees.

AAFMAA Career Assistance Program

The Army and Air Force Mutual Aid Association’s Career Assistance Program is probably the best loan deal available for military servicemembers. Those eligible for the program receive a $5,000 loan at an unbelievable 1.5% interest rate for a 48-month term. The AAFMAA loans program is open to active duty Army and Air Force officers and NCOs in the following pay grades:

• Officers in pay grades O-1, O-2 and O-3


• Warrant Officers in pay grades WO-1 and CW-2


• Noncommissioned Officers in pay grades E-6, E-7, E-8 and E-9

You must be an AAFMAA member with an active life insurance policy to participate in this program. You also may only participate one time in your military career. For more information, visit the AAFMAA CAP website.
All of these programs offer military personnel fair alternatives to cash advances, payday loans, bad credit loans and other rip-offs. Do yourself a favor and research these options before taking advantage of any offer you see on the streets outside your base.

Posted in Military Pay & Benefits |