Did you know that the U.S. government employs two million full-time workers? What’s more, that doesn’t even include the 600,000 employees working for the U.S. Postal Service!
After all, the government gives quite a lot of benefits to their people, job stability being one of the main ones. Health benefits are also superior to those given by the private sector.
To top it off, there will always be government-related work. Whereas private companies may close, leaving their employees jobless.
The biggest drawback, however, is the pay, which can be quite lower than private employees. Fortunately, installment loans for government employees are widely available.
Ready to learn more about your top options for government employee installment loans? Then let’s dive right into it!
Installment Loan Explained
Installment loans are loans paid back in increments, usually once a month. Their terms are usually for a period of several months or even years. In that way, they are different from payday loans, which you pay back in full after two to four weeks.
Being longer-term loans, installment loans also typically have bigger amounts. Their interest rates are also lower than payday loans.
Furthermore, some types of installment loans are specifically for federal or government employees. They have lower interest rates compared to standard or general bank installment loans. Here are some of them that you can rely on in case you find yourself low on funds.
1. Discretionary Allotment Loans for Federal Employees
With an allotment loan, you “allot” a specific amount of your salary to pay for a loan. The “designated” payments are then automatically deducted from your salary.
Qualification is often easier for government employees than those in private companies. First, because there’s the security offered by being an employee of the government. So long as the borrower is a government employee, there’s a guarantee of loan repayment.
There are two types of allotment loans for federal employees: discretionary and non-discretionary.
With a discretionary allotment loan, you get to choose how much to “allot” to repay a loan. Payments are still automatic, which is a plus since you won’t have to worry about missed payments.
Also, borrowers are usually able to choose an “end date” for the allotment period. After which though, they’d have to “enroll” another type of repayment method. This can be another bank account, a credit card, or other sources of funding.
2. Non-Discretionary Allotment Loans
A non-discretionary allotment loan has the same automatic repayment terms. The only difference is that the lender chooses the designated amount. Once you sign up for this type of allotment loan, it would continue until you pay off the entire loan.
3. Federal Credit Union Loans
In the first quarter of 2018, there were 5,530 federally-insured U.S. credit unions. These not-for-profit organizations often offer both secured and unsecured loans to government employees. However, only members of the credit unions can apply for a loan.
As such, you need to sign up for membership first before you can borrow money from them. If you qualify for membership, then you likely would only have to pay a one-time membership fee. Most unions also require members to make a small deposit.
4. Private Military Loans
These loans are for both active servicemen and veterans. Some lenders also allow the spouses of military members to apply for the loans.
The most reliable lenders offer programs to military applicants with bad credit. Meaning, even with a not-so-stellar credit score, they can still get the financial assistance they need.
On the flip side, some lenders only accept those (or their spouses) who are currently on duty. Others also require applicants to have been in the military for a set number of months or years.
All these depend on the lender though, so be sure to read the fine print.
Note that private lenders also need to abide by the Military Lending Act (MLA). This law limits the annual percentage rate to 36% for loans with terms of less than three months.
Under the law, members or their spouses also don’t have to waive their state or federal rights. Voluntary allotments for loan repayments are also restricted by the MLA. Borrowers are also free from penalty payments if they want to pay back the entire loan early.
5. Personal Installment Loans
Government employees can use personal installment loans for almost anything, like house payments. Most banks and online lenders offer these programs.
With banks though, the usual hard credit checks and procedures apply. All these can make the process more time consuming and inconvenient.
Whereas online lenders often only perform soft credit checks. This then allows lenders to qualify applicants faster and with fewer requirements. Plus, soft credit checks have little effect on credit scores.
6. Online Installment Loans
These are pretty much like personal installment loans, except the entire application process is online. That gives borrowers the advantage of speed and convenience. In some cases, you can get access to the funds within 24 to 48 hours.
7. Personal Loans for Poor or Bad Credit
Personal loans for government employees with poor or bad credit can be a lifesaver in case of emergencies. Like with bad credit military loans, lenders don’t prioritize a borrower’s credit score. Instead, they look more closely at the loan applicant’s ability to repay the loan.
Note that these loans do have higher interest rates. However, they may be a good option in case of a serious financial pinch.
Explore Installment Loans for Government Employees Now
Granted, the employment benefits of government workers are more awesome than private employees. But those who work for the government don’t enjoy the same high income many in the private sectors do.
In cases of financial emergencies, installment loans for government employees can help. They can tide you over until your finances are more stable. Be sure that you look at all your options first, so that you can choose the best loan based on your needs (and profession).
Ready to start looking for the best (and most convenient) online installment loans? If so, then be sure to check out this guide we have on finding the best online loans!
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