Best Personal Loans for Veterans

Veterans can use personal loans for almost anything — from relocating after service and paying for home renovations to debt consolidation and medical expenses. Credit unions and banks that primarily serve members of the military and their families offer some of the best personal loans for veterans. You can also find great personal loan options for veterans through online lenders.

This article will cover the best lenders offering personal loans to veterans and look at additional financial resources that veterans can explore.

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Best personal loans for veterans

Although they don't cater specifically to veterans, several online lenders can be viable alternatives to military-oriented banks and credit unions. They may offer lower minimum interest rates on personal loans to borrowers with good or excellent credit, and some specialize in lending to borrowers with bad credit or fair credit.

Navy Federal Credit Union

Rates start at 8.74% APR

Navy Federal Credit Union has very low rates, which makes it an excellent option if you have good credit. It also doesn’t charge origination or application fees with your loan. Loan amounts are available up to $50,000 with loan terms up to five years. Home improvement loans may have terms as long as 15 years with loan amounts up to $150,000. You can expect a decision and possibly loan funds as soon as the same day.

Navy Federal also offers loans as small as $250, as well as lower-rate loans secured by your savings account or certificate of deposit. Other federal credit unions offer similar small-dollar loans as an alternative to risky, high-interest payday loans.

Membership is open to veterans, active-duty military, Department of Defense civilian employees, and their family members.

USAA

Rates start at 9.640% APR

USAA offers much larger loans, which can be useful if you need to fund home renovations or other major expenses. Loans are available up to $100,000 and repayment terms range from one to seven years. However, loan amounts start at $2,500, making USAA less suitable if you need a small personal loan. 

If you set up autopay, you could get a 0.25% rate reduction, and in most cases, you’ll get an instant application decision. 

USAA offers membership to military service members, veterans, and their families.

Related: Best Loans for the Military

What are personal loans for veterans, and how do they work?

Personal loans for veterans work like any other personal loan, for the most part. Here’s how these installment loans work, at a glance:

• Loan amount: You receive a lump sum of money from a lender; you can usually get approved and receive the cash within a few days. Usually, you don’t need to offer any collateral, though there are secured personal loans for borrowers with bad credit that do require collateral.
• Fees: You may have to pay an origination fee (an upfront loan fee), but it’s usually deducted from the amount you borrow.
• Usage: You can use the money for almost anything (there are a few personal loan usage exceptions to be aware of). While common uses for personal loans include debt consolidation, home improvement, and emergency expenses, veterans may find unique use cases. These include funding the transition back to civilian life and loss of military benefits, covering relocation expenses if moving away from a military base after deployment, or paying for high medical expenses, including mental health care, after serving.
• Repayment: You’ll make monthly payments over a set number of years (principal plus interest) until you’ve paid back what you borrowed.

There is one minor difference between the standard personal loan and a personal loan for veterans: Veterans may have access to lending sources that other borrowers don’t, such as military-focused credit unions (like Navy Federal Credit Union) and military-focused banks (like USAA).

Active duty servicemembers (not vets) get additional protections when borrowing, through the Military Lending Act and Servicemembers Civil Relief Act.

How to apply for a personal loan as a veteran

Interested in getting a personal loan? Here’s how to apply as a veteran:

1. Get prequalified: Use an online loan marketplace like Credible to compare multiple personal loan lenders in one place. With only a soft credit check, you can prequalify with lenders and get an idea of the rates and terms you might qualify for. Prequalification provides estimates but isn't an offer of credit.
2. Compare your options: Consider factors such as APR, loan term, loan amount, and even customer service when narrowing down your options.
3. Apply online or in person: You can usually apply for a personal loan online. You’ll need to have some documentation handy, including proof of income and proof of residence. If you’d prefer, you can apply in person at a local bank or credit union.
4. Wait for approval: Some lenders may offer approval within minutes, but others may take longer. If your credit report is frozen, you’ll need to temporarily unfreeze it so the lender can pull your credit.
5. Agree to the loan terms: If you’re approved, review the loan terms carefully, including repayment terms, fees, and interest rate. Sign the loan agreement if everything looks right, and make sure the lender has your bank account info to direct deposit the funds.
6. Make plans for repayment: As soon as your loan account is created, log in to set up automatic payments. (Pro tip: Many lenders offer a small rate discount if you enroll in autopay.) Set calendar reminders so you can always make sure your bank account has enough funds to clear the day before your scheduled payment.

How to compare veteran loans

When comparing personal loans as a veteran, you’ll want to consider a few key factors:

Eligibility requirements

Eligibility requirements for personal loans vary by lender. Each lender generally sets a minimum credit score, as well as requirements for income, employment, and debt-to-income ratio. Some lenders may only be available in select states.

With military-focused banks or credit unions, additional requirements can include:

• Military status (active-duty or retired)
• Civilian employment with the Department of Defense
• Family member of active-duty military or veteran

Annual percentage rate (APR)

Often, borrowers think they should compare interest rates or conflate the term “interest rate” with “annual percentage rate.” But the annual percentage rate (APR) is actually different from the interest rate and is a better way to measure the cost of borrowing.

APR refers to the interest rate and any upfront fees (such as an origination fee). Thus, the APR is a better indicator of the cost of the loan on an annual basis. Ideally, you want to choose the personal loan with the lowest APR and a short repayment term to save the most money on interest. 

Loan amounts

Loan amounts for veterans vary by lender and purpose, with examples including:

• Navy Federal: $250 to $50,000 for general-purpose loans, up to $150,000 for home improvement loans
• USAA: $2,500 to $100,000

Loan amounts from commercial lenders and traditional banks typically range from $1,000 to $50,000. However, some banks offer small-dollar loans to existing customers, such as Bank of America's Balance Assist loans (up to $500). A few lenders offer personal loans up to $100,000, and BHG Financial's maximum loan amount is $250,000.

Related: How Much of a Personal Loan Can I Get?

Repayment terms

Typically, personal loan repayment terms run from two to seven years. On the extreme end, you can find loan terms as long as 10 or even 20 years (typically for home improvement loans).

The longer the loan term, the lower your monthly payment will be — but bear in mind that this extends the length of time you’re paying interest, which makes the loan more expensive. Prioritize the loan with the shortest repayment term whose monthly payments you can still reasonably afford.

Funding speed

Some lenders offer same-day approval and same-day funding, meaning you could have your loan funded the same day you apply. Others may take a few business days for either phase (approval and funding), especially if you’re working with a brick-and-mortar institution.

If you need money immediately, it may be worth choosing a lender offering same-day funding, even if the APR is slightly higher. If you can wait a few days, prioritize the loan with the lowest rate.

Related: How Long Does It Take To Get a Personal Loan?

What are the requirements for a veteran personal loan?

Eligibility requirements for personal loans vary by lender, but in general, lenders have the following requirements:

• Age: Generally, borrowers must be 18 or older to take out a personal loan, but it may be higher in some states.
• State: Some lenders may not offer personal loans in all 50 states.
• Credit score: Most lenders require a credit score of 640 or higher, but there are some lenders that may offer personal loans to borrowers with a score as low as 540. Some secured personal loans are available to borrowers with no credit history at all. You may also improve your chances of getting a personal loan by adding a more qualified cosigner, such as a close family member.
• Income and employment: Lenders typically want borrowers to have steady employment (or another source of income). That income also needs to be high enough to reasonably manage monthly payments. One way to measure this is a borrower’s debt-to-income (DTI) ratio. A high DTI means you have a lot of monthly debt obligations relative to your monthly income and thus may not be able to afford a personal loan payment.
• Eligibility: If you’re getting a loan through a credit union or bank that works exclusively with military members and their families, you may need to show proof of your military affiliation.

Active-duty servicemember borrowing protections

Federal laws offer veterans a measure of protection in certain financial matters, including loans, as well as certain legal matters that involve finances.

Military Lending Act

The Military Lending Act (MLA) is a law enacted in 2006 that offers multiple protections for active-duty servicemembers — and their spouses and dependents — when taking out a loan.

Primarily, the MLA caps the annual percentage rate (interest rate and fees) at 36% on any loan provided to a qualifying member of the military. While this is a helpful limit, it may not make a difference when taking out a personal loan as a member of the military. 

Lenders typically cap APRs at 36% on all personal loans, regardless of military status or credit score. Further, this protection is for active-duty servicemembers, not veterans.

The Military Lending Act does offer other protections, including:

• No prepayment penalties
• No mandatory allotments
• No mandatory waivers of certain legal rights

Servicemembers Civil Relief Act

The Servicemembers Civil Relief Act offers financial and legal protections to active-duty servicemembers (including Army, Marine Corps, Navy, Air Force, Coast Guard, Reserve, and National Guard. It also covers certain members of the Public Health Service (PHS) and the National Oceanic and Atmospheric Administration (NOAA) when they are serving in a manner similar to active duty. While not a protection for veterans, it is important to know if you are considering serving or are currently serving.

Chief among those protections is an interest rate reduction. Any existing loans a servicemember has when they become active duty — including student loans, credit cards, car loans, mortgage loans, medical bills, title loans, and installment loans (such as personal loans) — are capped at a 6% interest rate during active duty.

In addition, the Servicemembers Civil Relief Act offers protections against:

• Default judgments in civil cases (like if you’re sued while serving and are unable to appear in court)
• Foreclosure on your home without a court order
• Repossession of your property without a court order
• Penalties for terminating housing and automobile lease agreements if orders are received for a permanent change of station or deployment for 90 days or more.

Other financial resources for veterans

Personal loans can be a great financial tool for veterans, but there are additional resources that veterans can rely on after their service.

Department of Veterans Affairs

The Department of Veterans Affairs (commonly referred to as the VA) is the official government agency that offers financial assistance for servicemembers and veterans, including the GI Bill and other education benefits, VA home loans, life insurance, disability compensation, support for a small business, pension benefits, and more.

You can also learn more about military benefits available to active duty servicemembers and veterans by visiting this guide on the official U.S. government website. 

National Veterans Foundation

The National Veterans Foundation is a non-governmental organization that offers a helpline and outreach for veterans, including those in need of food, transportation, and clothing. The foundation can also help veterans seeking employment via a job board, as well as educate veterans about some of the financial resources available via the government, such as VA home loans.

Coalition to Salute America’s Heroes

The Coalition to Salute America’s Heroes is a nonprofit organization designed to help veterans and their families in need of aid. Among the resources available to vets are emergency financial aid, conferences and retreats, and employment resources. Start by filling out this online form to see if you’re eligible for assistance.

211

While not exclusive to veterans, 211 (a number you can dial) allows you to connect with local experts who can help veterans find the resources they need, including food, housing, and health care.

Veterans of Foreign Wars

The Veterans of Foreign Wars (VFW) is a nonprofit that dates back to 1899. The organization offers a number of helpful benefits to veterans, including financial assistance and counseling.

Hiring Our Heroes

Hiring Our Heroes is a nonprofit organization that helps veterans, as well as recently active duty servicemembers who are transitioning to civilian life, find employment opportunities. The resources are also available to military spouses.

USA Cares

This nonprofit specifically aims to help post-9/11 military veterans, active duty servicemembers, and their families by providing financial assistance, education, and skills training. USA Cares offers a host of programs, including:

• The Military Assistance Response Program, for servicemembers and veterans facing financial hardships
• The Certified Military Housing Specialist Program, to help real estate agents understand the unique needs of military families looking for homes
• The Homeless Veterans Reintegration Program provides job training and placement services for homeless veterans (throughout Kentucky, where the organization is based)

Methodology

Credible evaluated 32 lenders across 1,216 data points to find the best loans for veterans. We chose the best lenders based on the following weighted categories:

• Rates and fees: 18.75%
• Eligibility and options for bad and no credit: 17.5%
• Availability: 12.5%
• Loan amounts and terms: 10%
• Customer satisfaction: 10%
• Customer service: 10%
• Efficiency and fund delivery: 10%
• Discounts: 7.5%
• Credible proprietary data: 3.75%

Credible’s team of experts gathered information from each lender’s website and from our partners directly. We also considered each of our partner lenders’ statistics over a 12-month period — including average funding times, average credit scores for approved applicants, and average rates. Each data point is verified by a senior editor to make sure it’s accurate at the time of publication. 

Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

Disclosure: Some lending partners that participate in Credible’s comparison marketplace offer loans to borrowers with scores as low as 550. Borrowers with low scores will have fewer lending options than borrowers with higher credit scores.