Tribal Lending: Get the Facts
- The short-term loans offered by the majority of tribal lending entities are a vital financial tool for millions of Americans who have difficulty securing traditional sources of credit like a bank loan.
- Unlike payday loans, the loans provided by the majority of tribal lending entities are amortized over a specific period, and require scheduled payments that go towards the principal and the interest of the loan.
- Tribal lending entities that provide loans should follow their respective tribal laws. These laws like their state counterparts, should provide protections to consumers.
- Borrowers are informed of their repayment schedule, the amount they will owe, the interest they will pay, and their options to resolve disputes before accepting a loan.
- The majority of tribal lenders offer loans from tribal lands via the internet.
- Tribal sovereignty guarantees tribes the ability to enact laws and be governed by them including the right to regulate their own commerce, including e-commerce.
- Tribal lending allows tribes to pursue their own economic self-reliance, create jobs for their members and their communities, provide critical services, and reduce dependence on dwindling government grants.
- Tribal lending via e-commerce is a critical economic opportunity for tribes that are geographically and financially isolated from the global marketplace.
- Tribes have fought for years, and will continue to fight for their rights to self-determination and self-governance.