Tribal loans are offered by companies that are part of or affiliated with Native American tribes. As such, they are often not subject to regulations that limit the interest rates and fees a lender can charge. These loans have high interest rates and can be difficult to repay if you only pay the minimum payments.
You will need decent credit with a monthly income of at least $1,2000 to qualify for a tribal loan. Some lenders may also require proof of employment and income verification through pay stubs or tax returns. Additionally, you may have to demonstrate that you can repay the amount borrowed without any issues. This could mean providing bank statements showing regular deposits into your account or setting up direct withdrawals from your checking account each month.
If you think a tribal loan is right for you, ask about their specific eligibility requirements to determine if you are likely to qualify.
Tribal loans are similar to payday and personal loans in that you can get approved quickly, with little emphasis on your credit history. Also, these types of loans are seldom offered by banks and credit unions, and most companies provide completely online applications. However, some critical differences between these types of loans will impact the terms and conditions of your loan agreement and the fees you may have to pay.
One difference between tribal installment loans and other types of personal financing is that many tribes only offer unsecured lending options. No collateral is required to obtain access to the funds you need. For example, payday lenders typically require you to provide a post-dated check to secure the loan amount borrowed against any outstanding fees or penalties. In contrast, tribal lenders do not require you to provide collateral for your loan.
Another difference between tribal loans and other unsecured personal loans is that these loans have a set number of months to repay the borrowed amount. For example, if you borrow $500 and have six months to pay it back, you will make six equal monthly payments totaling $500 until the balance has been repaid. Other native lenders offer even longer terms, such as 48-month installment loans with no renewals.
When deciding whether a tribal loan is right, we recommend starting with the Payday Lenders Now list of tribal lenders. In this directory, we've reviewed and documented many of the largest companies offering loans on a Native American Indian Reservation. Compare each company's APR and payment terms and review the repayment terms before you pick up the cash!