Tribal installment loans are quickly becoming a popular choice for those who are in need of a loan that is different from the traditional loan or payday loan. Tribal lenders are lenders that are affiliated to Native American tribes; these lenders enjoy tribal immunity; they are able to offer loans that might not be legal according to the state laws. This enables the tribal lenders to approve more loans and make the loans more flexible hence providing better contracts for the borrowers who may not afford to pay the normal price of the loans. Here are some of the top advantages of choosing tribal installment loans over traditional loans:Here are some of the top advantages of choosing tribal installment loans over traditional loans:

More Flexible Qualification Requirements

Thus, the main benefits that can be derived from tribal installment loans are as follows: The qualification criteria are less strict compared to banks’ and credit unions’ loans. Tribal loans are flexible and even those with bad credit, a short credit history, or other problems such as recent bankruptcy can qualify for it. Unlike credit scores the lenders consider other factors and are usually more sympathetic towards personal situations. This is especially important to those who may not meet the standard qualifications for a loan with other lenders but they are able to get the necessary funds.

Better Chances of Approval for a Loan with Poor Credit History

Based on the relaxed qualification standards, tribal lenders also offer significantly higher approval percentages to those with poor credit scores. While most traditional lending companies will not approve loans to individuals with a credit score below 620 or 640, tribal lenders will accept applicants with a credit score as low as 500. Thus, credit risk customers have higher probabilities of getting approved. And the loans can assist to reestablish credit if the payments are made on time.

Lower Income Threshold

Anyone who wishes to take a traditional personal loan from a lender has to earn a minimum income of approximately $20,000 per year. However, tribal lenders are much more lenient when it comes to income as some of them have no minimum income requirement. This also enables the low income earners to be able to access financing that would have otherwise not been possible for them to access.

Larger Loan Amounts

Some of the conventional financial institutions have a limited loan upper limit for people with poor credit or low earning capacity with the limit being $5000 or lower. Tribal lenders will give higher loan amounts ranging from $1,000 to $10,000 for high risk applicants that banks will not consider. It also provides applicants access to more cash when they require larger loans.

Longer Repayment Terms

One of the most attractive aspects of tribal installment loans compared to other bad credit loans, such as payday loans, is that they are repaid over a much shorter period. Unlike payday loans that demand a large amount of money by the next paycheck, tribal loans are repaid gradually in 6 months-2 years. This makes the payments much more affordable and easier to manage as opposed to the single-pay short term loan.

Lower Interest Rates

While tribal installment loans are available to individuals with high risk, the interest rates for such loans are lower than those of unsecured loans such as credit cards or personal lines of credit. They are also substantially lower than those of payday and title loans, which can have an APR of 300% or more. Tribal loan interest rates are usually between 25% and 35% per annum.

Fixed Payments

Appointments are fixed for the term of the tribal installment loan, and therefore, the consumer will always know the amount that is due and the date that it is due. This is because the borrowers are able to set their budget and plan their finances in order to make the required payments every month without worrying about fluctuating rates and amount.

Fast Funding

Where it can take days or even weeks for loan applications to be reviewed and decisions made, the tribal lenders can take 1-2 business days to consider the application and provide the loan approval and can fund the approved loans in as little as 24 hours. It also means that applicants receive funds faster when they need them, which results in a shorter turnaround time.

They are less likely to take legal action against debtors in cases where they have not received payment.  

While there are traditional lenders who will take drastic steps such as wage garnishing or suing a borrower for late or missed payment, tribal lenders will not take such steps. They are comparatively more forgiving if a borrower has any problems informing them of any delay in payment.

APPLICATION AND PROCESSING DONE FULLY AND EXCLUSIVELY THROUGH INTERNET

The whole process of tribal loans’ issuing and receiving is conducted through the Internet, while the money is transferred to the applicants’ bank accounts electronically. This means that accessing these loan options is much easier than the conventional ones where one may have to book an appointment, provide documents, wait for long time and even have their applications physically reviewed.  

Tribal Lenders with a good reputation do report to the credit bureaus.

Another less discussed but significant aspect of tribal loans is that while taking the loan, majority of the authentic tribal lenders do provide the details of the payments made on the loans to the major credit bureaus. Thus, not only these loans may allow applicants to obtain the money they may need so much, but also, if they manage to make payments on time and without defaults, their credit score will improve. It might make it easier to qualify for other credit in the future demonstrating capability of managing the installment loan payments responsibly.

In conclusion, tribal installment loans are one of the few options that provide financing for people who cannot get a loan from conventional sources. They offer many benefits: faster approval, faster funding, less stringent requirements for the applicants, better conditions and often lower interest rates in comparison with predatory loans, which can be very beneficial for a huge number of clients. They assist in the middle between the standard banks and payday lenders; they give installment periods at the same time as approving applicants with credit issues that cannot be approved in other places.