Details
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 one month
The term of the loan must range from one to six 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 its members