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Everything You Need to Know About Tribal Loans

When facing a financial tight spot, it’s easy to make wrong decisions and take loans that attract substantial interest rates. Of course, you might be in a financially tight spot and be compelled to go with the option you get.

As such, tribal loans are like installment loans for a short period, but it attracts high-interest rates and comes with a short repayment plan. In this post, ill walk you through everything you need to know about tribal loans. So without further ado, let’s jump straight into it.

What Are Tribal Loans

Lenders issue tribal loans for users from tribal lands. And such lenders provide users with tribal loans for bad credit and interest rates and terms with state regulation immunity. Such kind of tribal loans have ties with Native American tribes.

Tribal loans are pretty controversial because, as some of their lenders protest, regulations to curb their activities. The Bureau for consumer financial protection even went off to take tribal loans to court over their lending activities which involved not specifying their interest rates.

But before you take such loans, you should know that they attract massive interest rates and have a short repayment plan. Here are a few things to know about tribal loans.

1. Tribal Loans Are Often Short-Term Loans

Tribal loans have a formation like an instalment loan and not like payday loans which require users to pay on their upcoming paycheck. That said, tribal loans offer a more stretched repayment plan than any payday loan.

However, tribal loans won’t provide you years to pay your loan as their repayment plan is in months. Moreover, their loans aren’t a great deal as they attract massive interest rates, which will make you take a significant amount of time to clear the loan even if the amount you took out wasn’t huge. You simply have to pay quickly to avoid paying a massive interest rate.

You can visit their website and see previous customers stating that tribal loans are expensive loans that are not wise for a future financial plan.

2. Tribal Loans Are Often For Small Amounts

Even though theres a handful of high-end tribal loan lenders who provide uses with top loans, the majority are reserved and only issue low amounts so that they don’t end up following people up when they can’t pay due to their massive interest rates.

Their loans are mainly for emergency purposes such as medical care and car repair and generally, go up to $1000.

3. You Can Usually Apply Online

Securing a tribal loan isn’t as hard as you might have thought, as you can make an online application to get in touch with such lenders and secure the loan you need.

Even though their loans attract high-end interest rates, their lenders are entirely credible as they offer instant loan approval. Once everything is sorted, they fund your account in less than 24 hours or the upcoming business day.

4. Some Tribal Lenders Claim Exemption From State And Federal Regulations

Generally, there have been several complaints regarding payday loans that they charge ridiculous fees. This has been confirmed by the CFPB, which has stated severally that such kinds of loans are a danger and may lead to unknown debt traps. As a result, many states have an operation to regulate payday lenders’ fees and the interest rates they charge.

However, some tribal loans have ignored such regulations on loans and give an excuse that tribal nations own them and hence won’t adhere to such devastating requirements. So before you take such loans, you need to be careful with what your state requires so that you don’t end up on the wrong side of the law.

5. You May Be Charged A Sky-High Interest Rate

Since numerous regulations slapped on tribal loans, they are now more expensive than payday loans. The CFPB has stated that payday lenders often demand a $15 fee if you take out $100, which, if calculated well, sums up to 400% of rates charged for a 14-day loan.

However, tribal loans cost way more than paydays, and it was evident in 2017 when a lawsuit was initiated against tribal loans but was withdrawn. The CFPB later stated that tribal loan interest rates range from 440%-950%. And that if you take an $800 loan with a repayment plan of 10 months, you’ll end up paying $3,320.


The truth is that you don’t have to sacrifice your financial plan for high-interest loans from tribal lenders, whereas there are many alternatives. You can take small personal loans or even payday loans, but if you have to secure tribal loans, try Heart Paydays to get the best deal.

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Written by Ellie

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