The National Credit Union Administration Board approved continuing the temporary 18 percent interest rate ceiling for loans made by federal credit unions, extending the cap through September 10, 2027. The Federal Credit Union Act generally limits federal credit unions to a 15 percent interest rate ceiling on loans, but permits a temporary ceiling of up to 18 percent for up to 18 months if money market interest rates have risen over the preceding six-month period and prevailing interest rate levels threaten the safety and soundness of individual credit unions. Staff analysis determined these statutory criteria were met for a ceiling exceeding 15 percent, with the analysis published online. The Board will continue to monitor market rates and credit union financial conditions and pointed readers to a recent Letter to Credit Unions for more information.
National Credit Union Administration 2026-02-06
National Credit Union Administration extends temporary 18 percent loan interest rate ceiling for federal credit unions to September 2027
The National Credit Union Administration Board extended the temporary 18 percent interest rate ceiling for federal credit union loans through September 10, 2027, due to rising money market rates and potential threats to credit union safety and soundness. The Board will continue monitoring market conditions and has published a staff analysis online.