What You Need to Know About Tribal Lending Services
The two major categories for tribal lending practitioners depends on who they lend to, whether they lend to tribal members, non-tribal members, or both groups of people.
Tribal lending can work the same way as “typical” lending because a tribal lender can give many of the same kinds of loans and other financing products as traditional loaners can in the US. The things that sets tribal lending apart is that some of the restrictions placed on traditional lenders do not apply to tribal lenders. This is because since a tribal lending company is run by American Indians who are considered sovereign territories, they obey different sets of laws and regulations. This doesn’t really change the services but it can change the method used to get to the end result, but you really shouldn’t have much to worry about.
Lending to Tribal Members and Non Tribal Members
Tribal – It is not unusual for these types of lenders to work with their own governments to better help the tribe prosper. This gives the tribes better preparation for any kind financial events that may arise. Because of the difference in regulations, other forms of payment may also be accepted like land revenue to be accepted for a security on a loan.
Non Tribal – It depends on the lender if they work with non-tribal members. If they choose to still continue practicing with members from outside of their tribe, then they can provide the services one would expect from a traditional lender, just with different regulations set in place, which gives them a bit more freedom.
Tribal Lending Services
They can provide many of the same services as traditional lenders. For example, they can provide both short-term and long term financing as well as giving out personal loans. They can also give credit counseling to those who are in need of some advice. They can even help with home mortgages and other types of land financing arrangements. The main difference between a tribal lender and a traditional lender is all about the regulations. Since tribal lenders do not have to follow all the same regulations, if you’ve been to a traditional lender, you may have a very different experience depending on what tribal lender you go to see.