Federal credit unions (FCUS) may continue to charge up to 18% interest on their loans, their federal regulator reminded them Wednesday in a letter, over the 18-month period that starts March 11.
The National Credit Union Administration (NCUA) sent the letter to FCUs (23-FCU-02) to remind them that the agency board voted in January to continue the temporary 18% interest rate ceiling for loans, as allowed for under federal law.
The FCU Act limits the credit unions to a 15% interest rate ceiling on loans. However, the NCUA Board may establish a temporary, higher rate for up to 18 months after considering certain statutory criteria, the agency noted. Previously the interest rate cap was 18%.
The latest period for the cap ends Sept. 10, 2024, the agency noted.
NCUA Letter to FCUs 23-FCU-02: March 2023 Permissible Loan Interest Rate Ceiling Extended