There are quite a few searches online for the term "Military Loan". This can refer to many different types of loans, like Military Pay Day Loans, Military Personal Loans, VA Loans, Military Business loans....well, you get the idea. You might see where that could get confusing. They all have their purpose but without really considering the benefits, a person might make a bad decision.
I'm not going to claim to be an expert on Military Loans, unless you're referring to VA Loans. However, after doing some research. I can tell you that I can see where the allure for Military "Personal" loans might be evident. They make it extremely easy to get a loan...almost too easy.
Military Loans are mainly available to military service members and can be used for a variety of reasons:
- Cash or financial assistance
- Auto repairs
- Debt consolidation
- Travel or vacations
- PCS moves
- Home repairs or improvements
- Moving expenses
- Uncovered medical or dental expenses
- Business expenses
- New computer
- Or for hundreds of other reasons that fit your needs.
The main overall purpose of a Military "personal" Loan is for quick cash. I would expect that the main target customer would be those service members and maybe even some veterans that may or may not have a home with equity and simply need a smaller loan quicker. That being the case, I have nothing bad to say about Military personal loans.
A VA refinance could be a very good alternative. However, the downside to doing a VA Refinance and pulling cash out is the funding fee (IF you do not have a service connected disability). The other possible downside is that you are limited to 90% of the value of your home which may lower the amount of cash you can pull out or eliminate the possibility all together. Obviously fees are a non-issue on a VA loan, of course, if you use valoanlending.com to find your VA lender for you.
Thousands of military personnel and veterans are taking advantage of the lower rates and using VA loans as the better alternative for pulling out more money. With the longer term, you're not putting quite the strain on your wallet as a shorter term personal loan might have.
Either way you go, don't jump into a quick loan without weighing out your options and comparing the pros and cons of each.