Best personal loans for the military of May 2024

Whether you’re a service member who needs help with moving costs or are a veteran transitioning back to civilian life, you have many options for getting financial assistance. You may be eligible for grants, interest-free loans, career assistance programs, and/or low-interest loans from nonprofit financial providers.

It may be quick and easy to get a personal loan from an online lender, especially if you have good credit. But some lenders are a better fit than others for military members and veterans. To help you narrow down your options, our experts evaluated loans for the military based on rates, fees, customer experience, and more.

Compare personal loan rates

Best personal loans for military

When you need extra cash, a personal loan can fit the bill, especially if you need the money quickly. The best personal loans for service members and veterans come with low rates and fees, fast funding, flexible terms, and superb customer support. It’s a good idea to prequalify, if possible, to see the rates and terms you may qualify for before applying. Here are our top picks.

Navy Federal: Best overall

Navy Federal offers personal loans with interest rates as low as 8.99% to 18% (current as of March 2024), repayment terms up to five years, and loan amounts up to $50,000. (Personal loans for home improvement are available up to $150,000 with up to 15-year repayment terms.) It also offers personal loans secured by your Navy Federal savings account or Navy Federal CD at even lower rates and with no credit check.

If you’re just starting your naval career, Navy Federal offers very-low-rate Career Kickoff loans for military academy juniors and seniors, and ROTC and OCS/OTS officers and candidates. If you qualify, APRs are 1.25% and 2.99%, respectively; loan terms are available up to five years; and maximum loan amounts are $32,000 and $25,000, respectively. Plus, payments may be deferred up to 90 or 180 days, depending on loan type.

You’ll need to apply over the phone or at a physical branch location, but once approved, loan funds are typically available that day. Membership is available to active duty, retired, and veteran service members in the armed forces and their families.

USAA personal loans: Best for large loans

USAA offers a wide range of personal loans, available from $1,000 up to $100,000, with repayment terms from one to seven years. APRs start at 10.14%, but don’t exceed 18.51% (current as of March 2024). Note that, like any personal loan, you’ll need to qualify, and USAA’s $100,000 personal loan will only be available to highly qualified applicants.

USAA membership is generally available to active, retired, and veteran military members and their families.

Best Egg: Best for high close rates if pre-approved

SoFi: Best overall

Upgrade: Best for fair credit

LendingClub: Best online experience

Avant: Best for all credit types

Methodology

We evaluated the best personal loans for the military based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Our team of experts gathered information from each lender’s website, customer service department, in-house resources, and via email support. Each data point was verified to make sure it was accurate at the time of publication.

What are military personal loans?

Personal loans for the military are typically unsecured loans that provide a lump sum that’s then repaid in fixed monthly installments, which include interest. Loan amounts can range from less than $1,000 to $100,000, depending on the lender, your credit profile, and your income. Repayment terms also vary by lender and loan purpose, but generally range from one to seven years.

If you’re an active duty service member, there are two laws in particular that you should be aware of.

Military Lending Act

The Military Lending Act (MLA) covers loans taken out by you, your spouse, or your eligible dependents while you’re on active duty. Lenders must limit a covered loan’s MAPR — military annual percentage rate — to no more than 36%. You also can’t be charged a prepayment penalty, in addition to other protections.

A loan’s MAPR largely mirrors its APR, which accounts for the interest rate and any upfront fees. The MAPR’s scope is slightly wider, however, and accounts for participation and application fees, which may not be considered in the loan’s APR.

Servicemembers Civil Relief Act

The Servicemembers Civil Relief Act (SCRA), meanwhile, deals with loans taken out before you became a service member. For the entirety of your time on active duty, you’re eligible to receive an interest rate reduction to a rate no higher than 6% on these loans, and the lender can’t add back in the lost interest after you leave active duty. The SCRA also covers loan products not covered by the MLA, such as auto and home loans.

How to compare personal loans for the military

When comparing loans for the military, consider these factors:

• Evaluate the APR: The APR allows you to compare loan options apples-to-apples, since it accounts for both the interest rate and upfront fees. In general, the lower the APR, the less you’ll pay to borrow. A good way to preview potential loan rates is to prequalify with at least a few lenders that seem like a good fit.
• Compare repayment terms: Some lenders offer more repayment terms than others. Your repayment term directly affects both how much you’ll pay over the life of the loan and your monthly payment. If the APR is the same, a shorter term relative to a longer term would mean higher monthly payments, but lower total interest costs. It’s essential to pick a term with a monthly payment you’re confident you can comfortably afford for the entirety of the loan’s term.
• Check funding times: Some lenders can transfer personal loan funds into your bank account as soon as the same day you’re approved for and accept your loan offer. If you need the money quickly, narrow down your options to lenders that advertise fast funding.
• Determine whether you need a cosigner or co-borrower: Applying with someone who has good or excellent credit can improve your chances of approval and give you access to lower rates and higher borrowing limits. A co-borrower has equal access to the loan funds, along with responsibility for repayment, while a cosigner does not have access to the funds, but is still responsible for the loan. If you want to apply with a cosigner, limit your search to lenders that allow cosigners, as not all do.
• Consider secured loan options: Some lenders offer personal loans that are secured by collateral, such as your savings account or a CD. These loans may have no credit check and tend to feature very low rates, even if you have bad credit. Just note that if you fail to repay the loan, the lender can seize your collateral to recover its loss.
• Check the lender’s reputation: Look at customer reviews on third-party websites to identify potential red flags. Trustpilot and the Better Business Bureau are two websites to consider.
• Consider any additional features that are important to you: If you’re in the military, you may particularly want features like mobile app payments and extended customer service hours, or the ability to change your due date. Some lenders can also offer financial resources that may be helpful to you. Consider any additional perks each lender offers before choosing your loan.

How to get a military personal loan

If you’re a veteran or service member looking to get a personal loan, follow the steps below.

1. Consider other options first: Before applying for a personal loan, consider whether you’re eligible for grants, which don’t usually require repayment, or other financial assistance programs that have lower borrowing costs. We discuss some of these alternatives in more detail below.
2. Check your credit: Check your credit reports for errors, and flag any you find to the appropriate bureau (or bureaus). You could potentially boost your credit score simply by fixing mistakes on your report. Visit AnnualCreditReport.com for free credit reports.
3. Prequalify with at least a few lenders: Choose lenders that have credit score and income requirements you can meet, and offer appealing rates and terms. Many offer prequalification directly on their websites, or through a loan marketplace.
4. Select the loan option that works for you: Compare personal loan quotes by looking at loan amounts, terms, rates, fees, and any other important criteria for each lender you’ve prequalified with. Once you’ve identified the best, proceed with the application. Applying will trigger a hard credit inquiry that can cause a small and temporary decrease in your credit score.
5. Submit the required documents: In addition to your contact information, you may need to provide proof of identity, like your driver’s license, and proof of income and employment, such as pay stubs or bank statements.
6. Sign your loan documents: If you’re approved, review your final loan offer. Note that it may differ from your initial rate quote, so make sure it still works for you, and read the fine print so you understand the terms. When you’re ready, sign the documents to accept the funds.
7. Wait for the funds: Many lenders can deposit the money directly into your bank account as soon as the same or next business day after approval, but some can take up to a week.

Other financing options for active duty service members

Here are some other financing options to consider.

Grants and interest-free loans for the military

If you’re in the military and your family is struggling to pay the bills, contact your military service relief organization to see if you’re eligible for assistance. It may provide grants or interest-free loans in addition to counseling and other resources.

• Army Emergency Relief
• Navy-Marine Corps Relief Society
• Air Force Aid Society
• Coast Guard Mutual Assistance

You can also get help from your local Red Cross chapter, or the Family Readiness Center and the Office of Financial Readiness. Check out the National Resource Directory for additional services and programs.

Low-interest loans and financial assistance for the military

Many local and national nonprofit organizations can offer low-interest loans to active duty military members and their families. For example, AAFMAA members with an eligible life insurance policy may be able to access a $5,000 personal loan at a 1.50% APR.

Operation Homefront also offers Critical Financial Assistance to eligible service members who need help with certain expenses. The American Legion and Veterans of Foreign Wars operate similar programs. To find more charities that offer financial help for military members, you can search the databases at Charity Navigator and CharityWatch.

Options for veterans

Here are some financing alternatives specifically tailored to veterans:

Small business grants for veterans

If you’re a veteran looking to start a small business, you’ll find a variety of funding programs. Some examples include:

• Hivers and Strivers
• Warrior Rising
• Second Service Foundation 

You can also contact the Small Business Administration for additional support and resources.

Career assistance for veterans

Whether you’re struggling to find a job, need help getting training, or are just looking for career advice, the Transition Assistance Program can help.

VA home loans

The home loan program offered by the Department of Veterans Affairs (VA) can help you buy your first home with no down payment.

Best military personal loans FAQ

Can you get a loan in the military?

Yes; whether you’re currently serving or retired, you have loan options. If you’re an active duty service member, lenders must comply with the MLA, which means any loan offers you get must have APRs no higher than 36%. Several lenders specialize in issuing personal loans to people in the military, as well as to veterans. In addition, you may be able to get an interest-free loan from your military service relief organization.

Can you get a military personal loan with bad credit?

While poor credit (a FICO score below 580) may limit your options for personal loans, some lenders offer bad-credit loans. It’s advisable to first check out grants and loans available from local nonprofits or your military service relief organization, though. If you can’t qualify for a personal loan, you may also consider applying with a well-qualified cosigner or co-borrower to help you get approved.

Can you get a personal loan from the VA?

No. The Department of Veterans Affairs does not offer personal loans. There are, however, several types of home loans that can be backed by the VA, including cash-out refinances. Keep in mind that a cash-out refinance is secured by your home, so you could lose it if you default.