Payday Alternative Loans (PALs): Federal Credit Union Rules, Lower APRs & Eligibility
By My Payday Advance Consumer Underwriting & Financial Literacy Council
Comparing NCUA-regulated PAL I and PAL II programs: 28% interest rate caps, 1 to 12 month repayment schedules, no rollover rules, and building credit history.
The National Credit Union Administration (NCUA) established Payday Alternative Loans (PALs) to provide affordable, structured emergency credit to credit union members.
1. PAL I vs. PAL II Comparison Matrix
Program Feature
NCUA PAL I
NCUA PAL II
Loan Amount Range
$200 to $1,000
Up to $2,000
Maximum APR Cap
28% Federal Cap
28% Federal Cap
Repayment Term
1 to 6 Months
1 to 12 Months
Application Fee Limit
Maximum $20
Maximum $20
Membership Requirement
1 Month Continuous
Immediate upon joining
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My Payday Advance Consumer Underwriting & Financial Literacy Council
Our financial research team monitors Truth in Lending Act (TILA) compliance standards, CFPB small-dollar lending enforcement, state usury laws, and credit union PAL program benchmarks.
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