As a veteran, active-duty military member, or a family member of someone in military service, you may have some questions about the best personal loans for your situation—and whether taking out a loan is a good idea in the first place.
After all, a military career can be unpredictable. You may receive PCS orders that will result in your spouse relinquishing their job; you may be reassigned to a new role; you may deploy next month with little notice. Should you willingly take on debt that you can afford now but may become unmanageable overnight?
Fortunately, there are protections and assistance programs that are dedicated to military members. Here’s what you need to know about personal loans for veterans and military members.
Do veterans and military members qualify for personal loans?
Generally speaking, a personal loan is the same—no matter what a lender calls it. Banks may advertise a wide array of personal loans, from swimming pool loans to debt consolidation loans to medical loans to moving loans. And while some financial institutions may tweak their APR range and approval algorithm depending on what you tell them you plan to do with the money, the truth is that you can use a personal loan for virtually anything.
Veterans and military members have access to the same loan types as civilians. Depending on the lender, you can often borrow up to $100,000 with a personal loan. The big difference is that military members can access some lenders and loan types that civilians can’t.
Best personal loan options for veterans and military members
In addition to standard personal loans, military members can take advantage of a few financial institutions that are exclusively for them—such as Navy Federal. While Navy Federal isn’t necessarily the best at any specific aspect of personal loans, it’s extremely well-rounded. For example, many personal loans:
- Are capped at $100,000. Navy Federal issues loans of up to $150,000.
- Come with ancillary costs like origination fees or application fees. Navy Federal doesn’t charge any of these fees.
- Offer a maximum repayment term of 84 months. Navy Federal loan terms extend to a whopping 180 months.
- Charge more than 24% APR. Navy Federal caps its interest at 18% APR.
Other military-focused financial institutions, such as PenFed Credit Union, also offer favorable terms for military members. That said, PenFed is available to anyone—not just veterans and active-duty military.
Editor’s Picks: Best personal loans for veterans and active duty military
Lender details checked Jan. 30, 2026.
How does military lending protection work?
Military members can benefit from additional financial protections that those not associated with the military can’t. These serve to keep debts manageable and shield service members from predatory loan terms.
Military Lending Act (MLA) protections
The Military Lending Act is designed to limit the cost of borrowing money for military members. It applies to unsecured loans such as credit cards, personal loans, payday loans, even some student loans.
With it, you should never be charged more than 36% Military Annual Percentage Rate (MAPR). This includes charges like application fees and credit insurance premiums in addition to interest. You’ll also not be subject to a prepayment penalty if you satisfy your loan before it’s scheduled to term.
Just note that you may not be approved for some loans because of protections like this. A lender doesn’t have to approve you for a loan if it intends to charge you more than 36% annual interest.
Servicemembers Civil Relief Act (SCRA) benefits
The Servicemembers Civil Relief Act helps to cover military personnel who have transitioned to active duty after accruing debt.
For starters, the interest rate on your personal loans (and other loans, such as mortgages, credit card debt, auto loans, etc.) should be reduced to 6%. The rate will typically remain at 6% until you are no longer active duty. This can dramatically lower your monthly payment and help you to pay down debts faster. You’ll also be protected from default judgments from not appearing in court.
To take advantage of SCRA, you’ll have to give your lender written notice of your active-duty status.
How to get a good rate for a personal loan as a military member
To get a good rate on your personal loan as a military member requires fundamentally the same strategy used by everyone else. There are a few critical steps you can take to improve your chances of being assigned low interest.
Foster your credit score
Your credit score tells a company in crude terms what kind of a borrower you are. The higher your credit score, the more creditworthy you are—and the lower APR you’ll typically get.
To get a reasonable interest rate, you should at least have a “good” credit score (typically pegged as 670 or above, per FICO). To increase your credit score, focus on:
- On-time payments: Always make at least the minimum payment on your current personal loans, credit cards, auto loans, etc. Allowing a loan to fall into delinquency is the fastest way to tank your credit score.
- Low credit utilization: A high balance on revolving lines of credit, such as credit cards, can drop your credit score. Experts recommend keeping credit utilization below 30%. If you’re above that, it could be worth waiting until you’ve paid down some of those bills.
- Lengthy age of account history: Don’t open and close accounts often. This will reduce your average length of account history—an important factor of your overall credit score.
Lower your debt-to-income ratio
Your debt-to-income ratio (DTI) represents the amount of your monthly income that’s tied up in paying your current debts. For example, if your monthly income is $7,000 but you pay $3,150 each month for your mortgage, auto loan, and credit card balances, your DTI is 42%.
Try to keep your DTI under 36% to get the best rates.
Use a credit union
Unlike a bank, a credit union is not for profit. It often assigns lower APRs than a bank. Stick with a financial institution like Navy Federal Credit Union or PenFed Credit Union for low rates.
Alternatives to personal loans for veterans and military members
A personal loan isn’t your only option to finance a large purchase or an emergency expense as a military member. Depending on your situation, you may find one of the following better suited to your needs.
Military Relief Society loans
Each branch of the military has a relief society that can help with interest-free loans under qualifying circumstances. Depending on the service, you could potentially get a loan of up to $2,000 to cover things like childcare, emergency travel, disaster relief, permanent change of station, even scholarships.
Home equity loan
If you own a home, you may be able to borrow from the equity you’ve built in your property. Lenders typically require that you leave between 15% and 20% equity in your home—but anything above that you can take out in the form of a loan. Just note that your home is used as collateral, so defaulting on your loan can result in losing your house.
Low-APR credit card
Credit cards are generally an unwise way to fund a large purchase thanks to their often eye-watering APRs. The exception is a credit card that offers a 0% intro APR for an extended period of time. Some may not charge interest for up to two years. If you can pay off your purchase before that interest-free window ends, this could be the way to go. Note that such cards typically require good to excellent credit to qualify.
The takeaway
As a military member, you have access to the same lenders as civilians—as well as a handful of additional financial institutions and loan types.
Credit unions like Navy Federal are exclusively for veterans, active-duty military, and their families. They offer large personal loans with generous repayment terms and comparatively low APR. In the right circumstances, you may also qualify for an interest-free loan from the Military Relief Society.
No matter where you get your personal loan, you should be be protected from predatory lending and excessive interest rates by the Military Lending Act and the Servicemembers Civil Relief Act.
Frequently asked questions
Are there personal loans for veterans and military members?
Veterans and military members can open a personal loan from any financial institution, but they also have access to some military-focused lenders. In terms of exclusive loan types, military members can benefit from Military Relief Society loans that can help assuage the burden of a PCS order, child care, emergency travel, and more.
Do veterans get special rates or discounts on personal loans?
Some lenders, such as Navy Federal, offer APR discounts to veterans and active-duty military.
Can active-duty military members get personal loans while serving?
Yes, active-duty military can open a personal loan while serving.
Can military spouses qualify for personal loans designed for veterans and service members?
Yes, military spouses typically qualify for personal loans designed for veterans and service members.
What credit score is needed for personal loans for veterans and military members?
The credit score needed for a veteran or military member to take out a personal loan is the same as any other applicant. Lenders will want to know you’re a trustworthy borrower before handing money to you. Specific requirements will vary by financial institution.
