Allotment loans are typically offered as a benefit to federal employees and government workers. They often have more lenient requirements to qualify than more traditional personal loans, and repayments are usually deducted directly from employee paychecks. Check out our top picks for allotment loans for federal employees with competitive rates and a wide range of loan amounts.
Best for state and local government and education employees: TrueConnect
Best for low rates
Kashable
Interest rates on Kashable allotment loans for federal employees start at 6%, which is much lower than some of the competition. It offers loans up to $20,000, with loan terms from 6 to 24 months, and unlike some lenders, it's available in almost all states except West Virginia. But you'll need good credit to qualify for the best rates, and loan proceeds can't be used for educational purposes.
Min. credit score
N/A
APR
6% to 36%
Loan amount
$250 to $20,000
Available in all states
Interest rates on Kashable allotment loans for federal employees start at 6%, which is much lower than some of the competition. It offers loans up to $20,000, with loan terms from 6 to 24 months, and unlike some lenders, it's available in almost all states except West Virginia. But you'll need good credit to qualify for the best rates, and loan proceeds can't be used for educational purposes.
While loan terms for most allotment loans are typically six months to two years, BMG Money offers terms of up to four years on loan amounts from $500 to $12,000, which can help keep your payments low. Plus, there are no prepayment penalties if you have the means to pay it off earlier, and it reports payments to credit bureaus, which can help improve your credit score. But it's not available in a handful of states, and its lowest rates start at 19.99%, which is on the high side. You'll also need to meet minimum length of employment requirements.
Min. credit score
No minimum credit score required
APR
19.99% to 35.99%
Loan amount
$500 to $12,000
Not available in: Connecticut, Indiana, Maine, Massachusetts, Nebraska, New York, Vermont, Washington, West Virginia, Wisconsin
While loan terms for most allotment loans are typically six months to two years, BMG Money offers terms of up to four years on loan amounts from $500 to $12,000, which can help keep your payments low. Plus, there are no prepayment penalties if you have the means to pay it off earlier, and it reports payments to credit bureaus, which can help improve your credit score. But it's not available in a handful of states, and its lowest rates start at 19.99%, which is on the high side. You'll also need to meet minimum length of employment requirements.
Access Loans offers allotment loans up to $6,000, with funding possible as soon as the same day you apply. It also has an easy application process and loan terms of up to three years, which is a bit longer than some similar lenders. However, it doesn't give a range of APRs — it only states that its highest rate is 35.99% — and it tacks on origination fees and finance charges, which adds to the loan's cost.
Min. credit score
None
APR
Up to 35.99%
Loan amount
$850 to $6,000
Available in all states
Access Loans offers allotment loans up to $6,000, with funding possible as soon as the same day you apply. It also has an easy application process and loan terms of up to three years, which is a bit longer than some similar lenders. However, it doesn't give a range of APRs — it only states that its highest rate is 35.99% — and it tacks on origination fees and finance charges, which adds to the loan's cost.
Pros
Same-day funding possible
Loan terms of up to three years
Easy application process
Cons
Charges origination fees and finance charges
APRs as high as 35.99%
Not available in all states
Loan amount
$850 to $6,000
APR
Up to 35.99%
Interest Rate Type
Fixed
Min. credit score
None
Turnaround Time
As soon as same day
Loan Term
8 to 36 months
Min. credit score
None
APR
Up to 35.99%
Loan amount
$850 to $6,000
Best for state and local government and education employees
TrueConnect
TrueConnect isn't available to federal employees yet, but it provides no credit check allotment loans up to $5,000 for state and local government and education employees. It also offers loans from $5,000 to $100,000 for employees who need a larger loan. TrueConnect's additional perks include free financial counseling, savings and banking accounts and a rate beat program. But you may have to repay your entire loan balance upon termination, the best rates require good credit and it's not available in all states.
Min. credit score
No minimum
APR
Starting at 3.99%
Loan amount
$1,000 to $100,000
Not available in: New Jersey, Rhode Island
TrueConnect isn't available to federal employees yet, but it provides no credit check allotment loans up to $5,000 for state and local government and education employees. It also offers loans from $5,000 to $100,000 for employees who need a larger loan. TrueConnect's additional perks include free financial counseling, savings and banking accounts and a rate beat program. But you may have to repay your entire loan balance upon termination, the best rates require good credit and it's not available in all states.
Pros
No credit check loans up to $5,000
Larger loan amounts available up to $100,000
Free financial counseling and other perks
Cons
Not currently available for federal employees
May have to repay loan balance in full upon termination
Not available in Rhode Island or New Jersey
Loan amount
$1,000 to $100,000
APR
Starting at 3.99%
Interest Rate Type
Fixed
Min. credit score
No minimum
Turnaround Time
As soon as the next business day
Loan Term
1 to 7 years
Min. credit score
No minimum
APR
Starting at 3.99%
Loan amount
$1,000 to $100,000
Methodology: Why we chose these lenders
Finder loan experts scoured the lending industry for financial institutions that specifically offer allotment loans to federal employees or workers with state and local government or educational institutions. We ultimately chose these lenders based on requirements to qualify, interest rates, loan amounts and terms, turnaround times and customer reviews.
Factors weighed in our methodology for the best allotment loans for federal employees include:
Turnaround times
Range of interest rates
Additional fees charged
Credit score requirements
Range of borrowing limits
Flexible repayment options
Better Business Bureau ratings and reviews
Trustpilot ratings and reviews
Number of states served
How to qualify for an allotment loan
Requirements to qualify for an allotment loan are similar across most lenders in this space.
Be at least 18 years old
Work for an eligible employer
Not be an active military member
Reside in a state serviced by these lenders
Depending on the lender, you may also need to meet specific employment criteria, such as length of time employed and minimum income requirements.
What do people on Reddit say about allotment loans?
People on Reddit seem to most highly recommend allotment loans from BMG Money and Kashable. Some say these loans can be an easy way to get fast funding when you need it. But other posters say these loans often come with high rates and relying on them to get by may put you in a financial hole. If rates are too high, you may look into other loans like BMG Money instead.
The Finder Score crunches 6+ types of personal loans across 50+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
Allotment loans typically have more lenient credit requirements than other types of lending. This leniency means that federal employees with low credit scores — or no credit history — can usually qualify for allotment loans if they meet the minimum requirements.
But keep in mind that you’ll need good credit to get the best rates. If you can’t find what you’re looking for, look into personal loans for people with bad credit.
Can an allotment loan hurt my credit?
Some lenders in this space only require a soft credit check to apply for allotment loans, which won’t affect your credit score. However, other lenders report your payment history to the credit bureaus, so your score will take a hit if you have late or missed payments. On the flip side, a history of on-time payments will boost your credit score.
Are allotment loans available for non-federal employees?
Yes, some of these lenders offer allotment loans to workers of all kinds — not just federal or government workers. You’ll just need to verify that your employer partners with a lender that offers allotment loans and that the loan is available in your state.
Lacey Stark is a freelance personal finance writer for Finder, specializing
in banking, loans, investing, estate planning, and more. She has 20
years of experience writing and editing for magazines, newspapers, and
online publications. A word nerd from childhood, Lacey officially got her
start reporting on live sporting events and moved on to cover topics
such as construction, technology, and travel before finding her niche in
personal finance. Originally from New England, she received her
bachelor’s degree from the University of Denver and completed a
postgraduate journalism program at Metropolitan State University also
in Denver. She currently lives in Chicagoland with her dog Chunk and
likes to read and play golf. See full bio
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