⚡ Alternatives & BankingUpdated: September 2, 2026
NCUA Payday Alternative Loans (PAL I & PAL II): 28% Maximum APRs & Eligibility
Reviewed by Consumer Financial Protection & Small-Dollar Lending Editorial 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 |
⚡
Consumer Financial Protection & Small-Dollar Lending Editorial Board
Our financial literacy specialists review short-term lending regulations, Truth in Lending Act disclosures, and credit union alternative products to protect consumer rights.
Need Fast Emergency Liquidity?
Review state lending rate caps, compare APR calculations, or submit a secure emergency request.