Militants are always regarded as special then the general civilian category of population. As the military personnel are serving our country as the protector of our domestic territory line preventing the foreigners to invade our national borders so they are the privileged citizen of the nation.
Generally the concept of bad credit loans works for the borrower whose credit score stands very low due to past history of debt default at his/her end. As this kind of finance is available to borrowers who have not met their dues in the past, so the risk involved in loan approval to such category of borrower is very high. As a result the loan comes along with high cost of heavy interest payment.
For the civilian bad credit loans is a costly affair, but exception to the general rule is the military personnel who are eligible for this kind of loan at lower interest rate. The simple reason behind this fact that they are high brow government professional who has 100% job security and stable income with even best retirement plan facility from the government, so the lenders don’t realize the risk element in granting loans to the militants, and thus charges low interest even on bad credit loans.
The extra benefits offered by government:
Military personnel gets an added advantage of securing bad credit loan i.e. along with the benefits of loan, the rate of interest for the same slashes down by as much as 6% making it a negligible interest loan if he/she agrees to resume active duty (position overseas). These benefits are under the military law and the lender is bound to keep the interest rate as defined in the interest cap passed by the legislation like Soldier's and Sailor's Relief Act. For active duty military loan, it is mandatory on the behalf of loan applicant to have at least 18 months left in their current contract.
The repayment procedure of the loan:
The repayment loan of the military loans has minimum hassle involved with no paper formality; it works as sweep accounts in banks where the installment amount is automatically deducted from the borrower’s pay check. The borrower doesn’t face the stringent situation of forgetting or missing the payment of any installment as it is automatically deducted from the salary of the borrower.
Military guaranteed loan:
Currently registered Military personnel are entitled for guaranteed military loans; the guaranteed loans are backed by a third party who guarantees the payment of loan in case the main borrower defaults in making the payment. The guaranteed loan is always a low cost loan as the lender is assured of the payment of loan amount by the third party in the eyes of law. Legally the lender can step into the shoes of the guarantor in case the original borrower becomes incapable to honor the debt obligation.
Bad credit loans for Military Personnel