What is Tribal Loans? (Is it Legit?)

by Mathew Hayden Experienced Content Writer

Tribal Loans is the general name for small dollar (typically $1,000 and under) unsecured personal loans made available to US citizens by Native American members of recieving Tribes. The loans are legit and legit for american citizens; however, since they are tribal lenders they aren't bound by any federal laws developed to protect consumers from predatory lending practices common in the more traditional financial services industry.

Tribal lenders follow the same lending laws as non-tribal lenders such as banks and credit unions. You can use the same criteria to evaluate tribal loans as what you would use for other financial transactions. Such as evaluating the companies legitimacy, understanding your obligations and determining if it will be feasible for you to repay the loan should you qualify.

Tribal lenders do not determine creditworthiness by using credit scores or other quantitative measurements of risk. Instead they review all aspects of your application including your income source and employment history. This makes these loans legit for citizens who wouldn't otherwise meet traditional lender requirements or don't have enough time to build a strong score with traditional lending institutions.

How does tribal loan work ?

It is a legit process similar to other loans. You can apply, and you must meet certain qualifying criteria such as minimum income and employment history in order to be approved. One of the most famous lending companies offering payday loans and cash advances (which people sometimes confuse with tribal lenders) usually requires you to have an active checking account and regular direct deposit or paycheck. They also verify your ability to repay before extending credit. If you qualify, the lender will deposit the funds into your checking account which you'll need to repay by your next pay date with out interest or fees due on these legit transactions .

Tribal Loans are legit because some Indian Tribes have been granted sovereignty by federal law.

What are the benefits of tribal loans? (are there any legit ones?)

Tribal lenders offer lower interest rates than credit cards or personal loans from banks, which often makes them a good alternative to payday lenders. Tribal lenders are also more open to accepting bad credit than banks, making them a good alternative for people with low credit scores or no credit score.

What are the limitations of tribal loans?

Tribal lenders do not offer installment loan options. This means that if you take out a $1,000 loan and only pay back $800, the full $1000 becomes due at the end of the term. Most people can't afford to repay their entire loan so this is not advisable.

The biggest difference between tribal lenders and banks is how they determine who gets approved for loans and what interest rate they charge those consumers. Banks will use both an applicant's credit score as well as income level to decide whether or not you're eligible for a loan and at what rate. Tribal lenders don't look at credit scores or income levels, which makes many

What are legit questions to ask?

If you need a loan and you’re considering taking out a tribal loan, here some key questions to consider:

How much will it cost?
How much will I be required to pay back? (how long do I need to pay the loan off?)
What fees are associated with the loan? (Any legit ones?, this question is legit?)
Do I qualify for the loan based on my income, credit score and other factors?

Who is best tribal lender ? (Who is the legit one?)

Every tribal lender, whether a tribe or a tribal enterprise has its own criteria to determine how much it will lend and at what interest rate. Tribal lenders may also have additional requirements such as residency in an area served by the Tribe/enterprise.

Examles of tribal lenders operating in the United States include:

PlainGreenLoans (from the Chippewa Cree Tribe)
MobiLoans (from the Tunica-Biloxi Indian Tribe of Louisiana)

Many banks and credit unions also offer loans to tribal members, who may be able to qualify if their income is regular and they live in a community served by the bank or credit union .

The best legit lenders for tribal loans are online lenders that specialize in offering funding to people with bad credit.

What problem can be with tribal lender?

In the event you have a problem repaying your loan the only option available to you may be legal action and/or working out an agreement. Tribal lenders operate outside of traditional lenders and laws which makes it difficult to enforce repayment without help from a lawyer or another tribal member.

Legit way to repay

The best way to make sure that you don't run into problems with a tribal lender is by understanding how much risk you're taking on if you accept one of their loans. As long as you use them only in emergencies and only borrow what you know you can afford, they should not lead to any significant financial issues for many borrowers.