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NCUA Letter to Credit Unions Reminds that 18% Interest Rate Ceiling Has Been Extended

ALEXANDRIA, Va.–NCUA has sent a Letter to Federal Credit Unions (24-FCU-02) reminding them that the board voted in July to continue the temporary 18% interest rate ceiling for loans made by federal credit unions.

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The agency noted that the Federal Credit Union Act generally limits federal 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,” said the agency.

The previously approved 18%  interest rate ceiling had been set to expire on Sept. 10, 2024.

The July NCUA board action extends the temporary 18% interest rate ceiling through March 10, 2026.

Read the Letter to Federal Credit Unions

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