Are you looking for Installment loans for federal employees? These loans are one of the many perks of being on the government’s payroll. Compared to people in the private sector, there are several loans for government employees that can be easily accessed without much struggle.
This article will walk you through the various types of Installment loans for federal employees and our eight best picks. So you can choose the one that suits your specific situation.
What Is an Installment Loan, and How Do I Get One?
Installment loans for government employees, just like any installment loan, are paid back in monthly installments rather than as a whole. Their contracts are usually for a few months or even years. They differ from payday loans for federal employees, which are repaid within weeks or months.
These are loans for federal employees only and can offer larger loan amounts because they are longer-term loans. They also have cheaper interest rates than payday loans or general bank installment loans.
Here are the various types of installment loans for federal employees only that you should consider if you’re short on cash.
Categories of Federal Employees Installment Loans
1. Discretionary Allotment Loans for Federal Employees
With this loan, you “allot” a specified portion of your salary to repay the loan you took. The “designated” loan payments are then withdrawn from your pay automatically.
Government personnel typically have an easier time qualifying for this loan than private-sector employees. For starters, being a government employee provides a sense of security. There is a guarantee of repayment as long as the borrower is still on the government’s payroll.
You get to pick how much to “allot” for the loan repayment. Payments will continue to be made automatically, which is a good thing because you won’t have to worry about missing a payment.
Another thing about discretionary allotment installment loans for federal employees is that borrowers are given the option of selecting an “end date” for the allotment period. They’d have to “enroll” in another form of repayment arrangement after that. This could be through a bank account, credit card, or other funding options.
2. Non-Discretionary Allotment Loans For Federal Employees
A non-discretionary allocation loan has the same automatic payback terms as a discretionary allotment loan. The main distinction is that the lender determines the amount to be borrowed. If you’re okay with the lender’s term and sign up for this type of loan, the allocation will continue until the entire amount is paid off.
Read: How to keep to your budget.
3. Online Installment Loans For Federal Employees
These are the most commonly available loans for government employees. Online installment loans are accessible to anybody, but being a federal employee is a major plus for approval. Borrowers benefit from the speed and convenience of online loans. In some situations, your loan application can be approved and the funds disbursed to you within 24 to 48 hours.
4. Loans From Federal Credit Unions
There were 5,099 federally insured credit unions in the United States as of December 2020. These non-profit organizations frequently offer both secured and unsecured federal employees installment loans. However, only credit union members are eligible to apply for a loan.
So before you can borrow money from them, you must first sign up for membership. If you meet the requirements for membership, you will most likely only have to pay a one-time charge.
The terms of credit union loans may differ from what’s obtainable with other installment loans for federal employees only.
5. Private Military Loans
Private military loans are available to both active-duty military personnel and veterans. Spouses of military personnel can also qualify for this type of loan with some lenders.
Military personnel with low credit can also be eligible to apply. However, some lenders only loan to those presently serving (or whose spouses are serving). Others require applicants to have served in the military for specific months or years.
These are, however, dependent on the lender. So be sure to read the final print.
It’s worth noting that private military lenders must also follow the Military Lending Act (MLA). Under the MLA, loans with less than three months have an annual percentage rate cap of 36 percent.
Members and their spouses are not required to waive their state or federal rights under the law. The MLA also restricts voluntary allotments for loan repayments. Borrowers are also exempt from penalty fees if they repay the loan in full early.
Read: List of top private military loans
6. Personal Installment Loans (PILs)
Personal Installment loans for federal employees are available for nearly any purpose, including house payments. Most banks and internet lenders offer these programs. But compared to lenders, banks follow the standard credit checks and processes, which can lengthen the process and make it inconvenient. So it’s always advisable to stick to internet lenders.
7. Loans for Federal Employees With Bad Credit
In an emergency, personal loans for government employees with poor or negative credit can be a lifeline. Lenders do not favor a borrower’s credit score, just as they do with negative credit military loans. Instead, they focus on the loan applicant’s ability to repay the loan.
It’s important to note that these loans have higher interest rates. However, they might be a decent solution if you’re in a tight financial situation.
8 Federal Employees Loans Lenders
Here are 8 Lenders for, Allotment loans like Kasahable, Payroll loans for federal employees, payday loans for federal employees, and installment loans for federal employees only.
Look through and choose the one that best suits your financial situation.
1. Kashable Loans For Federal Employees
Kashable offers Installment loans for federal employees only and Payroll loans for federal employees up to $200,000 with a 6% APR. Repayments through payroll allotments.
- Amount: Loan amounts range from $500 to $20,000.
- Terms: A six- to 24-month loan is available.
- APR: The annual percentage rate (APR) begins at 6%.
Requirements: You must be a federal government employee.
- Is a credit check necessary? Yes
2. Federal Worker Education & Assistance Fund (FEEA)
FEEA provides financial aid to civilian government employees in the United States.
- Maximum loan amount: $1,200
- Terms: Maximum loan period of ten months
- APR: FEEA loans do not have an annual percentage rate (APR).
- Requirements: You must be a government employee who has worked for at least twelve months. You must also provide papers proving difficulty or content related to the invoices you require assistance with.
- Is a credit check required? Yes
3. Air Force Aid Society (AFAS)
The Air Force Aid Society is a non-profit charitable organization that serves as the United States Air Force’s official charity. The headquarters of the organization are in Arlington, Virginia. It also offers loans for federal employees with bad credit, allotment loans like Kasahable, and installment loans for federal employees.
- Loan limit: Standard Assistance loans have no limit. Falcon loans have a $1,000 cap.
- Terms: Standard Assistance loans typically have a duration of 12 to two years, while Falcon loans have a term of three to one year.
- Cost: AFAS loans have no annual percentage rate (APR).
- Requirement: Active-duty, military services or a dependant, Air Force Reservists or widow/widower or child of an army user who died on active duty or while retired are all eligible. It is necessary to make provisions for documentation before applying for the relief.
- Is a credit check required? No
4. P2P Military Loans
P2P Military Loans provides military personnel with loan facilitation information and resources, mostly through introductions to third-party firms that allow members of the Armed Services to make loans to one another or borrow money from one another.
- Loan amounts: Ranges from $1,000 to $40,000
- Terms: vary depending on the type of loan taken out.
- APR: The annual percentage rate (APR) ranges from 6 to 35.64 percent.
- Requirements: You must be an active-duty military dependent, a retired army or reliant, or a member of the Reserves or National Guard.
- Is a credit check required? Yes
5. Postal Lending
Postal Lending is like Kashable loans for federal employees but provides installment loans for federal employees for postal workers in Ohio.
- Maximum loan amount: $1,000
- Terms: A 12-month loan is available.
- APR: APRs range from 7.61 percent to 47.61 percent.
- Requirement: Must be a postal worker in Ohio and has worked for the federal government for at least nine months.
- Is a credit check required? No
6. BMG Money
BMG Money provides payday loans for federal employees, payroll loans for federal employees, and allotment loans like Kasahable.
You may also be able to acquire a cheaper APR than if you took out a payday loan. They also offer federal employees installment loans.
Maximum loan amount: $100 to $35,000
Terms: vary based on the amount of the loan.
APR: APR ranges from 24 to 32 percent.
Requirement: Must be at least 18 years old, not in bankruptcy, not in the military, and a current government employee for at least one year.
Is a credit check required? : No.
7. Army Emergency Relief (AER)
Army Emergency Relief, sometimes known as the Army Emergency Relief Fund (AERF), is a non-profit, charity organization created in 1942 that is separate from yet closely affiliated with the United States Army. The headquarters of the organization are in Arlington, Virginia. AER offers loans for federal employees with bad credit and allotment loans like Kasahable.
- The loan limit for Army Emergency Relief (AER): none
- Terms: Vary depending on the type of loan you get.
- APR: AER loans do not have an annual percentage rate (APR).
- Requirement: You must be a current-duty army member or a dependent, a retired army member, or the widow/widower or child of a military member who died while on active duty or when retired. Documents demonstrating the need for relief must be provided.
- Is a credit check required? No
In conclusion, federal employees installment loans can be helpful in times of financial hardship. They can help you get by till your finances improve. Make sure you consider all of your alternatives first so you can choose the best loan for your circumstances (and profession).
Have you gotten installment loans for federal employees from any of these lenders? What’s your experience?
Please share with us in the comment section.