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About
About
Created by the U.S. Congress in 1970, the National Credit Union Administration is an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions.
Regulation & Supervision
Regulation & Supervision
The NCUA protects the safety and soundness of the credit union system by identifying, monitoring and reducing risks to the National Credit Union Share Insurance Fund. Backed by the full faith and credit of the United States, the Share Insurance Fund provides up to $250,000 of federal share insurance to millions of account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.
Analysis
Analysis
The NCUA’s economists and analysts compile data on the credit union system’s financial performance, merger activity, changes in credit union chartering and fields of membership, as well as broader economic trends affecting credit unions. Users can find information on a single credit union or analyze broader nation-wide trends.
Support Services
Support Services
The NCUA provides a number of support services to the credit union system, such as providing training, grants and loans, chartering, and field-of-membership services; maintaining the health and stability of Share Insurance Fund; managing the assets of failed credit unions; and providing emergency liquidity.
Consumers
Consumers
The NCUA works to protect credit union members and consumers, raise awareness of potential frauds, facilitate access to affordable financial services, and educate consumers on the importance of savings and how they can improve their financial well-being.
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News
Stay up to date on the NCUA's activities by subscribing to the NCUA's Express messages. Read press releases, speeches, testimony, and Annual Reports. Register for upcoming conferences and events.
Cybersecurity Resources
Cybersecurity Resources
Cyberattacks and cybersecurity vulnerabilities pose significant risks to the financial system. Because of vulnerabilities within the credit union industry and the broader financial system to potential cyberattacks, cybersecurity is one of the NCUA’s top supervisory priorities and a top-tier risk under the agency’s enterprise risk-management program.

Permissible Loan Interest Rate Ceiling Extended

21-FCU-04 / August 2021

Permissible Loan Interest Rate Ceiling Extended

To

Federal Credit Unions

Subject

Consumer Lending

Status

Active

To

Federal Credit Unions

Subj

Permissible Loan Interest Rate Ceiling Extended

Dear Boards of Directors and Chief Executive Officers:

This letter communicates the NCUA Board’s decision to continue the current 18 percent interest rate ceiling for loans made by federal credit unions, based on the authorities established by the Federal Credit Union Act. The Board approved the 18 percent rate at its June 24, 2021, open meeting.

Although the Federal Credit Union Act generally limits federal credit unions to a 15 percent interest rate ceiling on loans, it provides the NCUA Board flexibility to establish a higher rate for up to 18 months after considering certain statutory criteria.¹ The June 24, 2021, NCUA Board action extends the 18 percent ceiling through March 10, 2023. The previous 18 percent rate ceiling expires on September 10, 2021.

The Board’s decision preserves your federal credit union’s ability to offer a higher rate payday alternative loan. You may still charge up to 28 percent on payday alternative loans under the terms and conditions specified in NCUA’s regulations.²

If you have any questions, please contact your regional office.

Sincerely,

/s/

Todd M. Harper
Chairman

¹ 12 U.S.C. §1757(5)(A)(vi)(I).

² 12 C.F.R. §701.21(c)(7)(iii).

Last modified on

11/14/24