Tribal loans have existed for years. They are common with people with low credit scores looking for a quick fix. It’s a short-term installment loan that operates under tribal laws. The lenders are mostly the American Native community.
You can use personal loans for tribal to offset urgent medical bills, pay school fees, buy household items, or pay for emergency bills. In the table below, we have handpicked a few tribal lenders with some of the best terms in the market. Later on, we will help you understand how tribal loans work, and even help you easily qualify for tribal loans. Read on!
Once borrowed, tribal pay-day loans take the single repayment day approach. The lender expects you to pay the full amount borrowed on the agreed specific date. Failure to which, you’ll incur regular interest charges.
If you’re in a tight financial spot, this type of loan may not be your best option. Delayed repayments can easily turn it into a financial mess.
To try to salvage the situation, most tribal lenders have adopted tribal installment loans. Here, the lender takes your loan amount, adds interest and other fees, then divides it into equal weekly or monthly repayment amounts.
The loan interest charged, among other things, depends on the loan amount and the repayment period.
Most tribal pay-day lenders are known to charge high-interest rates, with some going up to over 800% APR.
The requirements for tribal loans vary from one lender to another. However, the following are the general requirements;
Other factors, like credit score, are mostly not a requirement. However, it’s always wise to carry due diligence to know what your lender’s requirements are. Please note that most lenders will have checked your profile beforehand to gauge your eligibility for the loan by the time of application.
Either way, tribal lenders are mostly not as strict. And, most of them will easily offer you guaranteed tribal loans as long as your basic requirements check.
Tribal lenders can sometimes arrange so you can repay your loan in bits instead of paying the whole of it on a fixed date.
Lenders take your loan amount, add interest and amount, then come up with bi-weekly or monthly installments you can pay. This way, you won’t feel the pinch in your loan repayment. You’ll also avoid falling into a debt cycle.
Regardless, please only go for these loans if you are sure you’ll be able to repay them. Payment delays can have you incur additional costs and mess up your credit score.
Tribal lenders can at times also partner with third-party lenders to offer installment loans. In such an arrangement, the tribal lender will still have some ownership rights and have a right to part of the APR.
The duo will still not be affected by statutory laws.
The loan is short-term, and you can use it as a quick-fix to take care of your financial emergencies.
If you’re planning to take a tribal loan, here are some of the things you should know;
You can borrow from a minimum of $100 to a maximum of $2,500. Different lenders, however, set different caps for loans. Your lender can make arrangements to go higher depending on your ability to repay.
Please note that the higher the loan amount, the higher the APR and other processing fees, if any. Enquire about such before borrowing a loan. Ensure you are fully aware of the interest charged, terms of repayment, and loan amount.
While at it, look out for hidden charges that could inconvenience you later.
Also, note that tribal loans are short-term. Only borrow the amount you’re sure you can repay within the needed time frame to avoid extra charges.
Traditional payday loans are quite different from tribal loans. While they are both known to attract high-interest rates, they differ in many other aspects.
Traditional payday loans have a fixed repayment date. Tribal loans, on the other hand, are similar to installment loans.
They boast lots of flexibility, with the borrower having the option of repaying the loan in installments. The number of repayment days will depend on the loan amount and your repayment history.
Traditional pay-day loans, instead of elevating your financial position, tend to hurt it even more. They easily get you into a recurrent debt cycle. However, with tribal loans, you’re only meant to repay what you borrowed, making them more secure.
However, we cannot also assume the fact that short-term installment loans could prove expensive. Only consider them for highly demanding situations like medical emergencies and when you cannot access any other secure financing source.
Yes. Installment tribal loans from registered lenders are usually safe. The only concern is usually their high APR.
You can borrow from as low as $100 to as high as $2,000. However, the borrowing cap can vary from one lender to another and depending on your ability to repay.
You’ll receive your loan within 24 hours of application. However, that depends on whether or not you qualify.
Yes. As long as you’ll be able to repay the loan.
Anybody above 18 year who meet the qualifications of a tribal lender.