On January 26, 2023, the NCUA Board voted to continue the temporary 18-percent interest rate ceiling for loans made by federal credit unions until September 10, 2024, based on the authorities established by the Federal Credit Union Act. The Federal Credit Union Act caps the interest rate on federal credit union loans at 15 percent. However, the NCUA Board may establish a temporary, higher rate for up to 18 months after considering certain statutory criteria. The NCUA Board has kept the 18 percent cap since 1987.
The NCUA Board’s decision preserves a federal credit union’s ability to offer a higher-rate payday alternative loan. A federal credit union may still charge up to 28 percent on payday alternative loans under the terms and conditions specified in NCUA’s regulations.
Visit the NCUA’s website for more information.