Established by the National Credit Union Administration (NCUA), Payday Alternative Loans (PALs) provide low-cost emergency liquidity for federal credit union members.
1. NCUA Regulatory Framework: PALs I vs. PALs II
| Program Parameter | NCUA PALs I Framework | NCUA PALs II Framework |
|---|---|---|
| Maximum Loan Principal | $200 to $1,000 | Up to $2,000 |
| Loan Term Duration | 1 to 6 Months | 1 to 12 Months |
| Maximum Statutory APR | 28.00% APR Cap | 28.00% APR Cap |
| Maximum Application Fee | $20 Maximum | $20 Maximum |
| Membership Waiting Period | 1 Month Minimum | Zero Waiting Period (Immediate upon joining) |