Leading online military loan companies include Pioneer Military Loans (recommended on this website) and Omni Military Loans. In addition to their home websites, these companies advertise at other military-related websites. Omni, for example, has an advertising relationship with leading military site Military.com. Other military loan companies include Lexicon Military Loans and Patriot Military Loans.

According to the DoD report cited above, perhaps thirteen to seventeen percent of servicemembers have obtained a military loan, with those having obtained one loan more likely to obtain additional loans. The report surmised that the average military loan amount was $1,654.

For military loan companies, military loans are surprisingly lower risk due to the military loans being repaid overwhelmingly via military allotment, one reason military lenders target military personnel over civilians. Yet, in some past instances, the lower risk didn't carry a lower interest rate (and in fact much higher rates), and a 2007 DoD regulation capped military loans at 36% APR to prevent abuses.

Many military loan companies use servicemembers' Leave and Earnings Statements (LES) to determine military loan application approval or disapproval. The LES pay statement is available to military servicemembers through the DoD's MyPay website. Military servicemembers can access their LES pay statements at the site and print a copy or save a digital image using computer software. A copy of the LES can then be sent via the Internet or by fax to the military loan company. Often, the entire military loan application process can take less than 24 hours from application to having the money electronically deposited in the bank.

The Internet has made military lending very easy, perhaps too easy. Military loans are virtually just a click away for servicemembers in need of quick cash. However, servicemembers are urged to use caution when seeking military loans, and use them only when absolutely necessary. Prior to signing for a military loan, the servicemember should be apprised of the interest rate, any additional fees and the length or term of the loan.

Overall, military loans can be very helpful during a time of need, or can trap the servicemember in a downward spiral of debt. Our advice: Use extreme caution; use one of the more reputable companies (this website recommends Pioneer Military Loans); determine all costs associated with the loan, and pay the loan off as quickly as possible.