Rates & Terms

Why Choose Allotment Loans for Federal Employees and USPS Workers?

  • Borrow up to $35,000
  • No hard credit checks
  • Funds are directly deposited into your account
  • Competitive Annual Percentage Rates (APRs)
  • Flexible repayment options.

Allotment Loans: Rates and Terms

Understanding the rates and terms of your allotment loan is essential for making an informed financial decision. We are committed to full transparency to help you do just that.

Loan Amounts

We offer allotment loan options with amounts that can go up to $35,000, depending on the information provided by the federal or USPS worker during the application process.

Interest Rates

The interest rates for allotment loans typically vary depending on the lender and the borrower’s creditworthiness. For federal employees and USPS workers, these rates can be lower than those of standard personal loans, given the stable employment status. Interest rates can range from as low as 5% to as high as 36%, depending on various factors including credit score, loan amount, and loan term.

Origination Fees

Many allotment loans come with an origination fee, which is a one-time charge that covers the cost of processing the loan. This fee is usually a percentage of the loan amount and can range from 1% to 6%. The origination fee is often deducted from the loan amount before disbursement, so it’s crucial to account for this when calculating the amount you need to borrow.

Prepayment Penalties

Some lenders impose a prepayment penalty if you pay off the loan before the end of the agreed-upon term. This fee can be either a fixed amount or a percentage of the remaining loan balance. However, not all lenders charge prepayment penalties, so it’s worth asking about this if you anticipate paying off the loan early.

Late Payment Fees

If you miss a payment, lenders generally charge a late fee. The exact amount varies but it’s often either a fixed sum or a percentage of the missed payment. Repeatedly missing payments can not only result in additional fees but also have a negative impact on your credit score.

Other Fees and Charges

Additional fees such as check-processing fees or returned payment fees may also apply. It’s essential to read the loan agreement thoroughly to understand all the associated costs.

Allotment loans can offer federal employees and USPS workers a more accessible and potentially more affordable way to borrow money. However, it’s crucial to understand the rates and fees involved to make sure you’re getting a loan that meets your financial needs without incurring unnecessary costs. Always shop around for the best rates, read the loan agreement carefully, and consider consulting a financial advisor before taking out an allotment loan.