Payday Alternative Loan | Neighbors Federal Credit Union
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Payday Alternative Loan

Neighbors FCU Payday Alternative Loan “PAL” is a closed-end loan that can be advanced in amounts ranging from a minimum of $250 to a maximum of $1,000. Created as an alternative to payday lenders, the Neighbors PAL offers a short-term loan to help you make ends meet.
mom and son


  • $250 – $1,000 advance
  • $20 application fee
  • Length of Loan: 1 month minimum to 6 months maximum
  • Payments to be made monthly in equal amounts. Last payment will be remaining balance + interest.
  • Limit of 4 PALs per calendar year


  • Must be at least 18 years of age
  • Must be a Neighbors member for at least 90 days
  • Must be employed with the same employer for at least 12 months
  • May not be delinquent or negative on any NFCU accounts
  • Must provide 2 most recent paycheck stubs

Apply by phone today

Payment begins 30 days from contract date. 24% APR (Annual Percentage Rate) with Direct Deposit and automatic payment; 26% APR without Direct Deposit and automatic payment. Member is allowed one PAL loan at a time. Balance must be paid in full before another advance is taken. No roll-overs. This product does not qualify for Skip-A-Pay. Minimum income to qualify is $1,300 per month (gross). Loan amount is limited to 30% of gross monthly income, up to $1,000. 50% of loan advance is frozen in a share account until the loan is paid in full. After a second advance, the member must complete consumer credit counseling with GreenPath Financial Wellness before receiving the third advance.
Example repayment schedule: 6 month loan of $500 at 26% APR results in a monthly payment of $89.68.