Frequently Asked Questions

An allotment loan is an installment loan repaid through a payroll allotment: an instruction to the federal payroll system (such as myPay for service members and Department of Defense civilians, or the NFC/OPM systems for other federal employees and retirees) to deduct a fixed amount from every paycheck and send it straight to the lender. Because repayment is automatic, lenders can often approve applicants with lower credit scores.

A payday loan is due in full on your next payday, which forces many borrowers into repeat borrowing. An allotment loan is an installment loan spread over multiple pay periods with fixed deductions, so each payment is smaller and the payoff date is defined. There is also no requirement to repay your entire check at once.

Generally: federal civilian employees, active-duty service members, U.S. Postal Service employees, and federal retirees whose pension is paid through OPM. You must be at least 18, have an allotment-eligible pay system, a steady income, and an active checking account with direct deposit.

Yes, in many cases. Because the payment is deducted automatically at the source, participating lenders often weigh employment and income more heavily than credit score. Many use soft or alternative checks, so seeing your offer typically does not affect your credit score.

Typical allotment loans range from $200 to $5,000. The exact amount depends on the lender, your income, and your remaining allotment capacity.

APRs among participating lenders typically range from approximately 5.99% to 35.99%, depending on the lender, loan amount, term, and your qualifications. Your exact APR is disclosed by the lender before you accept.

The application itself takes about five minutes. Decisions are usually fast, and if you're approved and accept an offer, funds are commonly deposited as soon as the next business day.

Through a voluntary payroll allotment: you authorize your payroll system to deduct a fixed amount from each paycheck and forward it to the lender until the loan is paid off.

If your allotment ends, most lenders switch you to an alternative repayment method such as autopay from your bank account. Terms for this are defined in your loan agreement — read them before accepting.

Neither. AllotmentLoansUS.com is a private informational and referral service. We are not a lender and not affiliated with any government agency. We may receive compensation from lenders when you apply through us.

No. Submitting the application is completely free, and you are never obligated to accept a loan offer.