The NCUA on Wednesday reminded credit unions that in January, the board of directors voted to continue the temporary 18% interest rate ceiling for loans made by federal credit unions, based on the authorities established by the Federal Credit Union Act.

The letter to credit unions stated that Federal Credit Union Act generally limits federal credit unions to a 15% interest rate ceiling on loans. However, the board may establish a temporary, higher rate for up to 18 months after considering certain statutory criteria.

The previously approved 18% interest rate ceiling expires on March 10, 2023. The January board action extends the temporary 18% interest rate ceiling through Sept. 10, 2024.