- The Military Lending Act caps most consumer credit to covered borrowers at 36% Military APR, including most fees.
- It covers active-duty members (including Guard and Reserve on active duty for more than 30 days) and their dependents.
- Each branch’s relief society offers interest-free loans and grants.
What the Military Lending Act does
- Caps the Military Annual Percentage Rate (MAPR) at 36%. MAPR includes most fees and add-on products, not just interest.
- Bans mandatory arbitration clauses and requiring a military allotment as a condition of the loan.
- Bans prepayment penalties.
- Restricts rolling over or refinancing certain loans with the same lender.
Payday loans typically cost hundreds of percent APR, so most payday lenders cannot lend to covered borrowers. Veterans and retirees are not covered by the MLA.
Interest-free help for service members
| Branch | Relief organization |
|---|---|
| Army | Army Emergency Relief (AER) |
| Navy and Marine Corps | Navy-Marine Corps Relief Society (NMCRS) |
| Air Force and Space Force | Department of the Air Force Aid Society (AFAS) |
| Coast Guard | Coast Guard Mutual Assistance (CGMA) |
These organizations provide interest-free loans and grants for emergencies such as rent, car repairs, travel and medical bills. Contact them through your installation or command.
Other options
- Military banks and credit unions, many of which offer small low-rate emergency loans
- Your installation’s personal financial counselor, a free service
- Credit union payday alternative loans, capped at 28% APR
Be wary of lenders that ask you to misstate your military status, or products designed to dodge the MLA. If a lender violates the MLA, the loan terms may be void, and you can complain to the CFPB.
Tried the free options first?If you still need a small short-term loan, you can send one request to our lender network. Compare the cost carefully.
See loan optionsFrequently asked questions
Can military members get payday loans?
Covered active-duty members and dependents are protected by the Military Lending Act’s 36% MAPR cap, so most payday lenders cannot lend to them.
Who is covered by the Military Lending Act?
Active-duty service members, including National Guard and Reserve members on active duty for more than 30 days, and their dependents. Veterans are not covered.
Where can service members get emergency money?
Each branch’s relief society, such as Army Emergency Relief or the Navy-Marine Corps Relief Society, offers interest-free loans and grants.