Created by the National Credit Union Administration (NCUA), Payday Alternative Loans (PALs) offer affordable small-dollar credit through federal credit unions.

PAL I vs. PAL II Frameworks

• PAL I: Loan amounts from $200 to $1,000; terms from 1 to 6 months; requires 1-month credit union membership prior to application.
• PAL II: Loan amounts up to $2,000; terms from 1 to 12 months; available immediately upon joining the credit union with zero waiting period.

Statutory Rate & Fee Caps

Under NCUA regulations, credit unions cannot charge more than 28% APR on PAL loans, and application processing fees are strictly capped at $20, making PALs roughly 14 times cheaper than conventional 391% payday advances.