Tribal Payday Loans; What Are They?
Tribal payday loans are the types of loans made by lenders owned by Indian or Native American tribes. These lenders usually operate within their tribe’s reservations. You will see tribal payday loans being advertised as payday loan alternatives for people looking for emergency cash.
These lenders are represented by the Native American Financial Services Association, which usually encourages them to offer payday lending alternatives. Keep on reading to find out more about tribal payday loans.
What Is The Difference Between Payday Lending and Tribal Lending?
Manageable Payment Terms
The main difference between these two types of loans is the process of repaying the loans. When taking a normal payday loan, you are supposed to repay the loan by a particular date usually set by the lender.
In most cases, you will need to repay the full loan amount, including interest, on your next payday. This tends to be prohibitive to many people, especially those who find themselves in a tight financial spot.
In case you fail to repay the loan amount by the set date, then you will have to pay additional fees and more interest charges.
This means that you may end up paying a lot more than the original repayment amount, which can lead to a lot of inconveniences.
Tribal lending, on the other hand, aims to alleviate this issue by allowing borrowers to repay their loans in installments. They do this by calculating the interest rate for the entire life of the loan. Once done, they add it to the total amount borrowed.
This amount is then divided into monthly or bi-weekly payments to determine how long it will take to repay the loan amount plus interest. The number of installments offered usually depends on how much you borrow and the lender’s terms and conditions.
What Do I Need to Qualify for Tribal Payday Loan?
It is easy to qualify for a tribal payday loan as long as you meet certain requirements. Anybody with a steady source of income is eligible for this loan. Borrowers do not need to have a good credit score to qualify for this loan.
Similar to traditional payday loans, tribal payday loans have other criteria they use to lend you money without using your credit score.
When applying, you will need to provide details such as your financial, personal, and income details.
What Are The Benefits of Tribal Payday Loans?
The main advantage of a tribal payday loan is that you do not have to repay it in full by the next payday. This can be beneficial in cases where you are in a period of financial difficulty and are not in a position to repay your loan by the next payday.
The bi-weekly and monthly payments are usually done in lower amounts, making them manageable for most people.
You will also have the option of paying off the loan early to avoid any penalties that might come with late payments.
In case you reside in a state where payday lending is illegal, you may take advantage of the tribal payday loan to help you take care of your financial emergencies.
The best thing about tribal loans is that they are available to everyone, including non-tribal and tribal applicants.
Drawbacks of Tribal Payday Loans
One of the reasons most people avoid using tribal payday loans is that borrowers usually have little to no protection from these lenders.
It is also hard to sue some of these lenders for any wrongdoing since many of them do not follow most of the lending rules associated with consumer payday loans.
Just like other payday loans, the interest rates can be very high compared to the traditional lending methods.
How To Apply for a Payday Loan Alternative From GreendayOnline
To help improve your financial situations, Greendayonline strives to offer its customers a new type of payday lending. The following are some of the reasons that make Greendayonline unique from other payday lenders, and why you should choose us as your payday loan lender:
- You can get a loan with any credit type. This means that even with bad credit, you will still be able to get a loan.
- You will get instant lending decisions.
- Free educational articles on how to manage your money and loans.
- Once approved, you can get your loan within 24 business hours.
- There is transparency, meaning that we do not have any hidden charges.
- Dedicated and reliable customer service.