The NCUA Board determines the rate of interest federal credit unions may charge on credit cards and other types of loan accounts.  
 
The current maximum allowable Annual Percentage Rate (APR) credit unions may charge is 18% for  loans, except for loans made under NCUA’s Short-Term Small Loan program offered by federal credit unions, which may charge up to 28% APR.

Federal credit unions can offer Short-Term Small Loans with an interest rate up to 28 % under the following conditions:

• Principal Amount: $200-$1,000 
• Term: 1-6 Months 
• Application Fee: $0-$20 (based on actual costs) 
• Eligibility: Member for at least 1 Month 
• Amortization: Fully Amortized (no balloon payments) 
• Rollovers: Prohibited 

NCUA designed the short-term small loan program to allow federal credit unions greater flexibility in providing alternatives to pay-day loans.