Allotment loans are typically offered as a benefit to federal employees like US Postal Service and government workers. They often have more lenient requirements to qualify than traditional personal loans, and repayments are 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.
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?
People on Reddit 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 want to look into other loans like BMG Money instead.
Alternatives to allotment loans
If you’re not a federal employee, don’t work for an employer that offers allotment loans or you just want to explore all your options, consider these lenders.
We currently don't have that product, but here are others to consider:
How we picked these
What is the Finder Score?
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.
Check out these additional options as alternatives to allotment loans.
Personal loan. You can borrow more money with a personal loan, and it’s not dependent on your employer. But you’ll likely need a better credit score to qualify than is required for an allotment loan.
Cash advance app. For smaller loan amounts, a cash advance app may offer a good solution, and they don’t require a credit check.
Installment loan. While interest rates are typically steep, an installment loan could be an option in an emergency. But only do it if you think you can repay it quickly to avoid excessive interest charges.
Buy now, pay later (BNPL) app. If you’re looking to make a large purchase, BNPL apps are typically easy to qualify for, often interest-free and let you pay over time in installments.
Frequently asked questions
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, check out personal loans for people with bad 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.
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.
No, most legitimate lenders require you to meet at least some basic eligibility requirements. However, allotment loans for federal employees are generally easier to qualify for than traditional loans.
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
Personal loans from credit unions can lead to big savings on interest. How do they differ from a regular personal loan and what do you need to apply?
Advertiser disclosure
Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
