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Best Personal Loans for Veterans & Active Military

Top loan options for veterans and military families.

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By

Christi Gorbett

Edited by

Megan B. Shepherd

Updated

Fact checked

Transitioning to life after military service can bring unique financial challenges, from managing debt to pursuing education or homeownership. Fortunately, some personal loan lenders offer loans with benefits tailored to those who’ve served. We’ll help you navigate your options and find the best loan to meet your needs.

Key takeaways

  • Veterans have many loan options — from banks, online lenders, and military-focused credit unions, sometimes with special perks.
  • Loans aren’t exclusive to veterans — qualification is still based on credit, income, and debt levels.
  • Legal protections apply — laws like the Military Lending Act cap costs and limit predatory terms.
This summary was generated by AI and may contain errors or omissions.

Best personal loans for veterans

Best for low rates

LightStream personal loans

9.5 Excellent

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With fixed APRs starting at 9.99%, LightStream is a great choice for veterans who want a personal loan with low interest rates. Plus, the company offers a “Rate Beat Program, ” where they'll beat any competitor's rate by 0.10%, making it easier to get the best rates.

LightStream also doesn't charge any origination fees, late fees or prepayment penalties, which makes your loan even more affordable. However, Lightstream requires a solid credit history, so it might not be the best option if you're a veteran with bad credit.

Min. credit score Good to excellent credit
APR Varies by loan purpose
Loan amount $5,000 to $100,000
  • Not available in: Iowa, West Virginia

Best for veterans with bad credit

Avant personal loans

6.8 Standard

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Avant offers personal loans to veterans with credit scores as low as 550, making it a good choice if you have less-than-perfect credit. The company provides loans ranging from $2,000 to $35,000 that can be used for practically anything, including debt consolidation, home improvements and unexpected expenses.

One of Avant's strengths is its fast and easy online application. The company is also known for fast funding, with loans received as soon as the next business day. However, it's important to note that interest rates can be high, and loans may come with an origination fee.

Min. credit score 550
APR 9.95% to 35.99%
Loan amount $2,000 to $35,000
  • Not available in: Iowa, Kentucky, Massachusetts, Michigan, Montana, Virginia, West Virginia

Best for first-time home buyers

Veterans United

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Veterans United Home Loans specializes in providing VA loans for veterans and active-duty service members to help them purchase homes. Interest rates are competitive, starting at 5.99% fixed for a 30-year mortgage and 5.625% fixed for a 15-year loan. There's no minimum credit score requirement listed, but a higher credit score will help you qualify for better rates.

VA home loans offer some unique benefits, with the biggest being no down payment required. This benefit puts homeownership in reach, even if it's your first time buying. VA loans through Veterans United also don't require private mortgage insurance (PMI), which reduces monthly payments and makes owning a home more affordable for veterans.

Minimum credit score Conventional: 620
FHA: 620
VA: 620

Best for debt consolidation

Discover personal loans

8 Great

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Discover Personal Loans offers a straightforward solution for veterans who need to consolidate their debt. With loan amounts ranging from $2,500 to $40,000, borrowers can combine multiple debts into a single, manageable monthly payment. Discover provides flexible repayment terms between 36 and 84 months, allowing veterans to choose a plan that fits their budget.

Discover is an especially good choice for debt consolidation because you have the option to pay creditors directly. This feature simplifies the process and ensures all your debts are paid off quickly. Plus, APRs start at 7.99%, and there are no loan origination or prepayment fees, making this an affordable way for veterans to reduce debt.

Min. credit score 660
APR 7.99% to 24.99%
Loan amount $2,500 to $40,000
  • Available in all states

Best for education costs

Navy Federal Credit Union Private Student Loans

Navy Federal Credit Union (NFCU) offers private student loans tailored to cover education expenses not met by federal aid, scholarships or grants. To qualify for these loans, you must be a credit union member. Membership is open to veterans, active-duty service members, Department of Defense employees and their families.

NFCU's private student loans feature competitive interest rates — fixed starting at and variable starting at 7.77%. NFCU also offers a 0.25% interest rate reduction for automatic payment, which helps lower the loan's overall cost.

APR Starting at 7.77%
Loan amount $2,000 - $120,000
Min. Credit Score Varies

What are personal loans for veterans

Personal loans for veterans are financial products designed to meet the needs of those who have served in the military. These loans are typically unsecured, meaning they don’t require collateral. They can also be used for a wide range of purposes, such as consolidating debt, covering unexpected expenses, making home improvements or funding education.

While few personal loans are specifically labeled as “for veterans,” many lenders offer special discounts or perks tailored to veterans and active-duty service members.

What is the Military Lending Act (MLA)?

Congress passed the Military Lending Act in 2016 to protect active-duty military and their families from predatory lending practices.

According to the MLA, lenders can’t charge more than 36% APR — including interest and most fees. They also can’t:

  • charge prepayment penalties
  • require you to sign up for automatic withdrawals from your paycheck
  • ask you to give up your right to sue the lender as part of the contract

What is the Servicemembers Civil Relief Act (SCRA)?

Enacted in 2016, the Servicemembers Civil Relief Act applies to existing loans and debts carried by active-duty military members. According to the SCRA, lenders can’t charge active-duty military rates higher than 6% while service members are away from home serving their country. This cap includes late fees and other fees.

When to consider a personal loan as a veteran?

Here are some common scenarios when taking out a personal loan might make sense:

  • Consolidating high-interest debt. If you have multiple high-interest debts (such as credit card balances), a personal loan can combine them into one payment with a potentially lower interest rate, making it easier to manage your finances.
  • Covering emergency expenses. Unexpected expenses like medical bills, home repairs or vehicle breakdowns can strain your budget. An emergency personal loan can provide quick access to funds to handle these situations.
  • Home improvements. Planning to renovate or repair your home? Personal loans can help you cover these costs without dipping into your savings or using high-interest credit cards.
  • Education or career advancement. You can use personal loans to pay for educational expenses, vocational training or certifications that help you transition to civilian life or advance your career.
  • Starting or expanding a business. Veterans looking to start or grow a small business could consider a personal loan as an alternative to business loans.
  • Building or rebuilding credit. A personal loan can help improve your credit score if managed responsibly. Timely payments show lenders you’re a reliable borrower and can positively impact your credit history.
  • Financing major expenses. Whether you need to buy appliances, cover wedding expenses, fund a vacation or purchase a vehicle, a personal loan can be a practical way to pay for large expenses.

How to compare the best personal loans for veterans?

Finding the best personal loan as a veteran starts with knowing what to look for. Here are the most important factors to consider:

  • Interest rates. Look for loans with the lowest fixed APRs to save money over the life of the loan.
  • Military discounts. A few lenders provide exclusive discounts or benefits for veterans, such as lower rates, more flexible repayment terms or waived fees.
  • Fees. Pay attention to any fees, such as origination, late payment or prepayment penalties. Many veteran-friendly lenders offer loans with few or no fees to keep costs low.
  • Repayment terms. Check the loan’s repayment period, which typically ranges from 12 to 84 months. A longer term means smaller monthly payments, while a shorter term reduces the total interest paid.
  • Credit requirements. Review the credit score requirements to ensure you meet the lender’s criteria. Some lenders specialize in working with veterans who have lower credit scores.
  • Prequalification options. Look for lenders that allow prequalification with a soft credit pull, which lets you see potential rates and terms without impacting your credit score.
  • Loan amounts. Know up front how much you want to borrow and make sure the lender offers loan amounts that match your needs.
  • Funding speed. If you need money quickly, check how soon the lender can disburse the loan after approval. Some lenders offer same-day or next-business-day funding.
  • Customer support and accessibility. Look for lenders with strong customer service and easy-to-use online tools, especially if you prefer managing your loan digitally.

What requirements do veterans need to meet to qualify for a personal loan?

Qualifications for veterans taking out personal loans are essentially the same as requirements for civilians. They include:

  • Proof of identity
  • Bank account in your name
  • Minimum credit score (varies by lender)
  • Proof of income
  • An acceptable debt-to-income (DTI) ratio (varies by lender and loan type)

If you’re applying for a loan specifically designed for veterans or offers a veterans discount, you may also need to show documentation proving your status.

Tips to increase your chances of qualifying

Getting approved for a personal loan isn’t always easy, but there are steps you can take to improve your chances, including:

  • Start with prequalification. Many lenders offer prequalification with a soft credit pull that doesn’t damage your credit score. Prequalifying gives you an idea of what loans you qualify for and the rates you’ll receive. It also allows you to narrow down your options and apply for loans you’re more likely to get approved for.
  • Improve your credit score. When you increase your credit score, you increase your chances of loan approval. Pay down debt, catch up on late payments and correct any errors on your credit report to bring your credit score up.
  • Lower your debt-to-income ratio. DTI measures how much of your income is spent repaying debt. If your DTI is too high, lenders might not approve your application. Try paying off credit cards or increasing your income to become a more attractive applicant.
  • Consider a cosigner. If your credit score or income is not strong enough to get a loan on your own, a cosigner can improve your chances of approval. Just make sure they have good credit and a low DTI ratio to help you get approved.
  • Offer collateral. If you have bad credit and are having trouble finding a lender, consider applying for a secured loan that requires collateral. Providing collateral lowers the lender’s risk, which increases your odds of approval.

How to get a personal loan for veterans

Getting a personal loan as a veteran can be straightforward if you follow the right steps. Here’s a step-by-step guide to help you through the process:

  1. Check your credit score. Review your credit score and report to understand where you stand financially. Most lenders ask for your credit score during the application to help prequalify you for loan offers.
  2. Determine your loan needs. Decide how much you need to borrow and what you’ll use the loan for. These factors help you find a lender that fits your financial goals.
  3. Prequalify with multiple lenders. Use prequalification tools to see what loans you might qualify for without affecting your credit score, which can narrow down your options.
  4. Compare your options. Look for lenders that cater to veterans or offer military discounts. Compare interest rates, fees, repayment terms and eligibility requirements.
  5. Submit your application. Once you’ve chosen a lender, complete the application and provide any necessary documentation, such as proof of income, tax returns, bank statements and military service verification.
  6. Review the loan terms. If your application is approved, review the terms and conditions carefully before signing the loan agreement.
  7. Receive your funds. Once you accept the loan offer, the lender deposits the funds into your account. Depending on the lender, this can happen as quickly as the same day or within a few business days.

Other financial resources for veterans

Struggling to adjust to civilian life? The following organizations offer financial aid, benefits, job assistance and other programs designed to help you and your family get back on your feet:

  • US Department of Veterans Affairs (VA). The VA provides a comprehensive range of benefits, including health care, disability compensation and educational resources. VA benefits can be difficult to navigate, but the National Veterans Foundation can help you complete the necessary forms if you don’t have the time — or patience — to figure it out on your own.
  • Blue Star Families. This nonprofit supports military families by offering career development programs, including free training, placement services, mentoring and networking events to help veterans and their spouses find employment opportunities.
  • Unmet Needs Program. Operated by the Veterans of Foreign Wars (VFW), this program provides grants of up to $1,500 to help military families cover unexpected expenses arising from deployment or an injury sustained while on duty.
  • Veterans of Foreign Wars (VFW). Beyond the Unmet Needs Program, the VFW offers a variety of services, including financial grants, educational scholarships and job placement assistance to support veterans and their families in navigating post-military life.
  • The American Legion. Through its Temporary Financial Assistance program, The American Legion offers grants to eligible veterans with minor children to help meet the cost of shelter, food, utilities and health expenses.
  • Rebuild Hope. This organization assists veterans disabled in Iraq or Afghanistan by providing financial support and counseling services to help them achieve financial stability and independence.
  • Modest Needs’ Homecoming Heroes Grant. Modest Needs offers grants to veterans returning from overseas deployments to cover emergency expenses or help bridge the gap while they transition to civilian life.
  • Hiring Our Heroes. This program, designed by the US Chamber of Commerce, helps veterans and military spouses find employment through corporate fellowship programs, resume help and access to mentors.
  • The Coalition to Salute America’s Heroes. This nonprofit offers financial assistance to veterans wounded during Operation Iraqi Freedom, Operation Enduring Freedom and Operation New Dawn and their spouses.

Bottom Line

Veterans have more personal loan options than ever, with lenders offering flexible terms, competitive rates and benefits tailored to your needs. Whether you’re consolidating debt, covering unexpected expenses or pursuing education or homeownership, there’s likely a personal loan that fits your situation.

Frequently asked questions

Does the VA give personal loans?

No, the VA does not offer personal loans. However, the VA does provide other financial programs, such as VA home loans and grants to adapt homes for disabled veterans and help low-income veteran families.

Do lenders offer personal loans tailored to disabled veterans?

No, most banks, credit unions and other financial institutions don’t offer personal loans specifically designed for disabled veterans.

Where can I find personal loans for military spouses?

Military spouses can find personal loans through Navy Federal Credit Union, USAA and PenFed Credit Union, which offer loans tailored to military families.

What’s the best place for active-duty military to get a personal loan?

Active-duty military personnel often find the best terms through military-focused financial institutions such as Navy Federal Credit Union and USAA, but online lenders are also a great option.

Are there loans available to veterans who want to start a business?

Yes, the SBA offers loans to veterans who want to start or grow a business. For more information or help with applying, contact the Office of Veterans Business Development (OVBD). Veterans may also qualify for business loans through traditional lenders, giving them more choices for funding.

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To make sure you get accurate and helpful information, this guide has been edited by Megan B. Shepherd as part of our fact-checking process.
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Christi Gorbett is a freelance writer with more than eight years of experience and a master's degree in English. She’s created a wide range of content for banks, financial product comparison sites, and marketing companies on topics like small business loans, credit cards, mortgages, retirement planning, lender reviews, and more. As a former teacher, Christi excels at making complex financial topics accessible and easy to understand. Her interest in finance grew when she returned to the U.S. after living in South Korea for nearly a decade. This shift was driven by several personal financial challenges: rebuilding her financial base after the move home, starting her own business, and catching up on retirement savings. These experiences deepened Christi’s practical understanding of finance and intensified her interest in the field. See full bio

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