Skip to main content
United States flag An official website of the United States government
Official websites use .gov
A .gov website belongs to an official government organization in the United States.
Secure .gov websites use HTTPS
A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

Permissible Loan Interest Rate Ceiling Extended

23-FCU-02 / March 2023
Permissible Loan Interest Rate Ceiling Extended
All Federal Credit Unions
Consumer Lending
All Federal Credit Unions
Permissible Loan Interest Rate Ceiling Extended

Dear Boards of Directors and Chief Executive Officers:

On January 26, 2023, the NCUA Board voted to continue the temporary 18-percent interest rate ceiling for loans made by federal credit unions, based on the authorities established by the Federal Credit Union Act.1

The Federal Credit Union Act generally limits federal credit unions to a 15 percent interest rate ceiling on loans. However, the NCUA Board may establish a temporary, higher rate for up to 18 months after considering certain statutory criteria. The previously approved 18-percent interest rate ceiling expires on March 10, 2023. The January NCUA Board action extends the temporary 18 percent interest rate ceiling through September 10, 2024.

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 do not hesitate to contact your regional office.



Todd M. Harper


1 12 U.S.C. §1757(5)(A)(vi)(I).

2 12 C.F.R. §701.21(c)(7)(iii). For more details on the payday alternative loan program, please use the attached link:

Last modified on