⭐ Alternatives & BankingUpdated: September 2, 2026
NCUA Payday Alternative Loans (PALs): Capped 28% APRs & Credit Union Eligibility
Reviewed by Consumer Cash Advance & Short-Term Lending Review Board
Credit union emergency liquidity: National Credit Union Administration (NCUA) PAL guidelines, 28% interest caps, $20 application fee limits, and 1-to-12 month repayment.
Federal credit unions offer Payday Alternative Loans (PALs) regulated by the NCUA to provide affordable small-dollar credit with strictly capped interest rates.
1. PAL I vs. PAL II Guidelines Compared
| Feature | PAL I (Established 2010) | PAL II (Established 2019) |
|---|
| Loan Amount Range | $200 to $1,000 | Up to $2,000 |
| Loan Term | 1 to 6 Months | 1 to 12 Months |
| Maximum APR | 28.00% APR Cap | 28.00% APR Cap |
| Maximum Application Fee | $20.00 maximum fee | $20.00 maximum fee |
| Membership Seasoning | 1 Month minimum membership | Immediate upon joining credit union |
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