The temporary interest rate ceiling of 18% for loans made by federal credit unions (FCUs) will run through March 10, 2026, the federal credit union regulator reminded in a letter issued Tuesday.
The National Credit Union Administration (NCUA) Board extended the temporary interest rate increase in July; the rate had been extended 18 months before that. That extension expires Sept. 10.
Under the Federal Credit Union Act (FCUA), FCUs are generally limited to a 15% interest rate ceiling on loans. However, the board is empowered to approve a short-term (18-month) increase in that rate after considering economic and market criteria set by statute.
An exception to the limit (known as the usury rate ceiling among credit unions) are payday alternative loans. According to NCUA, FCUs may still offer a higher rate on the loans, charging up to 28% as set by NCUA rules.
NCUA sent the notice in a “letter to FCUs,” signed by agency Board Chairman Todd M. Harper.
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