18% loan-rate ceiling continued to late 2015
Jan. 24, 2014 – The federal credit union loan rate ceiling will, as urged by NAFCU, remain at 18 percent through Sept. 10, 2015, NCUA’s board decided Thursday.
The federal credit union loan rate ceiling applies to all lending except loans originated under NCUA’s payday alternative loan program, which has a rate cap of 28 percent.
The board’s action prevents the ceiling from dropping to the statutory limit of 15 percent after March 10. NAFCU strongly urged that the current limit be continued in light of the current trend in rising market interest rates.
NCUA reviews market rates and the condition of credit unions in making decisions on the loan rate ceiling, which is established by the Federal Credit Union Act. It can revisit the rate ceiling at any time to address changes in rate trends.
The board was also briefed Thursday on the agency’s 2014-2017 strategic plan and 2014-2015 annual performance plan.
NCUA Board action memorandum
NAFCU comment letter