Military installment loans are an ideal solution for the borrowing needs of military personnel. If you are an active duty service person in one of the armed services or other government positions you might qualify for certain military loans. You can also qualify if you are no longer active but previously served in the United States military, no matter what branch you served in.

What are Military Installment Loans?

Military installment loans are obviously intended for military employees, but what is an installment loan? An installment loan is simply a type of loan that you pay back over a previously agreed upon time period in predetermined payments. Most installment loan repayments are made on a monthly basis. An example would look something like a three year repayment schedule at some fixed amount, or in other words, 36 monthly payments of X dollars.

There are two types of military installment loans. The first is a secured loan. A secured loan is one that is backed by some type of collateral. This means that the loan amount is secured against a physical asset in case of default. The second loan type is an unsecured loan. Unsecured loans do not have collateral backing and because of this usually have higher interest rates than secured loans. In the event of default of payment, there is no tangible asset to seize and banks therefore charge higher interest to compensate for their assumed risk.

Military installment loans, whether secured or unsecured, can be used for any number of purposes. You can get auto loans, personal loans, motorcycle loans, mortgage loans, home improvement loans, along with just about any other type of loan you can think of. Once you get the money, it is up to you what to do with it.