Military Payday Loans

Military payday loans are obtained in the same way as loans of this type are received in the civilian world, but there may be a slight difference.


In the accordance with the Military Lending Act (MLA), 2006,  the members of the military service can’t be charged an interest rate higher than 36% on most types of loans, payday loans including.

The Act covers the services provides to all active-duty service members as well as the members of their families and dependents.

A 36% interest cap refers to a 36% Military Annual Percentage Rate (MAPR), and it includes such points as:

  • financial charges;
  • add-on products
  • and any other related fees and charges related to the cost of a loan.

Initially, the MLA related to short-term small cash loans and their variations. It only requested that lenders disclosed certain loan information about the rates and borrower obligations with regards to a loan, as well as prohibited certain loan features.

However, in 2015 the U.S. Department of Defense (DoD) issued new regulations that expended the power of the Act and included more creditor groups into it.


Besides, the same regulations request that lenders should screen each and every application from a military member and not take their words about active service or being a part of the family for granted. Lenders have 2 options for screening:

  • it is either to use a DoD online database where active duty status of an applicant can be checked;
  • obtain consumer information from a national consumer reporting agency (CRA) report.

Since October 3, 2017 the same regulations came into effect with regards to credit card loans. Now the latter are also subject to  MAPR.

Things to Remember

Whether you are in the service or a civilian, the thing stays the same, regardless of the reason for which one selects direct cash advance lenders, and no matter what lender they choose to work with. This service of fast funding is actually a short-term solution, not a part of your everyday life.

In fact, it is rather expensive to use payday loans as a long-term solution to money problems because it becomes extremely expensive in no time, and can trigger potentially unpleasant problems.

Military payday loans are designed to serve specific purposes generally when the family happens in trouble because deployment or other unforeseen expenses.

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