Skip to main content

To provide credit union members with an alternative to high-cost payday loans, the National Credit Union Administration (NCUA) allows under its regulation federal credit unions to offer small-dollar loans called payday alternative loans (PALs).

  • Loan amounts between $200 to $1,000.
  • The borrower must be a member of the federal credit union for at least 1 month.
  • The term of the loan must range from 1 to 6 months.
  • The federal credit union can charge an application fee only in the amount needed to recoup the actual costs associated with processing the borrower’s application, up to $20.
  • The PAL cannot be rolled over.
  • Bayou Community Federal Credit Union additionally offers free financial counseling services to their members.