What personal-loan protections do active-duty military have?

The Military Lending Act (MLA) is the strongest federal consumer-credit protection. Lenders verify active-duty status through the DoD Manpower Data Center; any loan to a covered borrower must comply with the 36% MAPR cap, which includes interest, fees, credit insurance premiums, and certain ancillary charges. Loans that exceed MAPR are void and the lender must refund payments. Most online personal-loan lenders simply price below 35% for everyone to avoid the compliance headache.

SCRA is a separate protection covering debts incurred before active duty. On any pre-service consumer loan, including a personal loan taken before deployment, the servicemember can request a rate reduction to 6% APR for the duration of active service. The lender must reduce the rate within 30 days of the written request and a copy of orders.

Navy Federal Credit Union, USAA, and PenFed are the standard military-focused lenders and typically offer the best pricing for active-duty applicants. Membership is open to active-duty, veterans, and family.