💵 Credit AlternativesUpdated: September 2, 2026

Credit Union Payday Alternative Loans (PALs I & PALs II): NCUA Rules & 28% APR Caps

By Nationwide Consumer Underwriting & Financial Literacy Review Board

Exploring non-profit consumer credit: NCUA regulatory requirements for PALs I ($200–$1,000) and PALs II (up to $2,000), 28% maximum APR, and zero rollover traps.

Established by the National Credit Union Administration (NCUA), Payday Alternative Loans (PALs) provide member-owned credit union alternatives to high-cost short-term advances.

1. NCUA PALs I vs. PALs II Program Comparison

Program Parameter	PALs I Specification	PALs II Specification
Maximum Loan Amount	$200 to $1,000	Up to $2,000
Loan Term Duration	1 to 6 Months	1 to 12 Months
Maximum Allowable APR	28% APR (NCUA Usury Ceiling)	28% APR (NCUA Usury Ceiling)
Maximum Application Fee	$20.00 (Actual processing cost)	$20.00 (Actual processing cost)
Membership Requirement	At least 1 month of active membership	Immediately upon joining credit union
Rollovers / Rollover Fees	Strictly Prohibited	Strictly Prohibited

Nationwide Consumer Underwriting & Financial Literacy Review Board

Our advisory team audits short-term consumer credit disclosures, TILA mathematical calculations, 50-state statutory rate caps, and Military Lending Act compliance.

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