Sometimes life can be unexpected, and much like the recent pandemic, we can get taken by surprise. Whether it be unexpected car trouble or utility bill, it's times like these when some of us may need to get some quick cash to help. However, the process can be somewhat tricky, as there are many different options out there to choose from. 

Tribal loans are one of them, but with much controversy surrounding them, most people aren't aware of how they operate. In this article, we are going to talk about everything you need to know about this loan type so that you can see if it's the right fit.

Let's get started.

What are tribal loans?

Tribal loans are very similar to payday loans; however, they come from lenders owned by Native American tribes on their land. Generally, they offer the same products as other services but are exempt from specific federal laws. This is because they operate under their own tribal rules based out of reservations. The amount you can borrow varies, but it is usually small, between $500-$2000. 

The Native American Financial Services Association (NAFSA) represents most tribal lenders. Created in 2012, they are an advocate for sovereignty and financial independence.

How can you apply for one?

Applying for loans can be one of the most overwhelming parts; however, it's important not to get too stressed. You can find guaranteed tribal loans online, and the process is relatively easy to follow. Just like most things, however, you do need to meet some requirements. These can vary from lender to lender, so make sure you do your research. For example, you generally need to be over 18, able to prove your identity, income, and employment status. 

If you've been approved, you should also make sure that you have all the information necessary about the loan. This includes payment plans, the amount required for each installment, and the different payment options they have available. The last thing you want is to suddenly find out that you are behind in your schedule.

What are the benefits?

One of the most significant advantages of tribal loans is that it's one of the easiest ways to receive fast cash. In most cases, you can get the funds within the next business day, unlike other creditors that can take weeks. Alongside this, it's excellent for those that have bad credit, provided they repay as agreed and only use it in the case of an emergency.

Another benefit is that the online applications make the money-lending process much more bearable. Instead of queuing in a bank, you can easily hop online and fill in the application form in a matter of minutes. It's flexible, efficient, and fast for those in desperate need of funds.

What can they be used for?

It's important to remember that tribal loans are only small short-term loans. This means you're only going to be able to apply for around $2000 max, and not every lender will be able to do that. Some creditors also have a minimum. (around $500), which is also something you may need to take into consideration. 

These types of funds are best used for absolute emergencies, such as medical emergencies or bills that may be overdue. The larger the loan, the more money that you need to pay back, and this can be quite significant depending on the fees and interest rates. Debt is always a possibility, and you want to stay away from it as much as possible.

Are they safe?

Tribal loans are a completely safe way to receive a short-term financial installment, but you still need to be cautious when browsing around online. When looking for a lender, make sure that they are registered and avoid using suspicious websites. Scams are always a possibility, and it can be harder to track down these cyber-criminals online. Reading some reviews is also a good idea if you are still feeling a bit skeptical. 

On top of this, it's also vital that you review your current financial situation before finalizing your decision. Much like other loans, you don't want to end up in a cycle (borrowing more money to pay off a loan), which you can't get out of.

What tips should I follow before taking out a tribal loan?

If you have decided that the tribal loan is the best option for you, you want to make sure that you have a healthy plan in place to make your repayments. These types of loans are not meant to be relied on and can put you into more debt than you initially started with very quickly. 

Learn how to budget your finances and make sure that you are doing everything possible to pay it off as quickly as you can. It's also wise to make sure you read through the fine print so that you are aware of precisely what is involved. This is one thing where reading the terms and conditions is a must.

What other options are out there?

If you are looking to explore all your options, suggestions similar to that of a tribal loan would include payday loans, small personal loans, and credit cards. However, like most things, they still accumulate interest and other fees. 

If you want to avoid a loan altogether, you might try finding some alternative ways to make money online, such as freelancing, selling off old items, or completing online surveys.

Final Thoughts

When taking into perspective, all of the above, tribal loans certainly are an option for those needing emergency cash. However, it's still important to think about other solutions first before completing an application. Known for their high-interest rates, you don't want to get pulled into a never-ending cycle of debt. 

Remember, do your research, always read the fine print, and have a strong repayment plan in place. This way, you can keep on top of everything and get through this potentially difficult time in the best way possible.

Good luck.