Payday Alternative Loan (PAL) Application

Payday Alternative Loan (PAL) Application Form Template

Credit unions play a vital role in providing affordable alternatives to predatory payday lending. If you're a credit union looking to streamline your Payday Alternative Loan (PAL) program, this comprehensive application form template is designed specifically for your needs.

What is a Payday Alternative Loan?

Payday Alternative Loans (PALs) are small-dollar loans offered by federal credit unions as a safer, more affordable alternative to high-interest payday loans. Regulated by the NCUA, PALs feature lower interest rates (typically capped at 28% APR), reasonable fees, and longer repayment terms that help members avoid the debt trap often associated with traditional payday lending.

Why Use This PAL Application Template?

This Paperform template makes it easy for credit unions to process PAL applications efficiently while maintaining compliance with NCUA regulations. The form is designed to:

• Verify membership status and ensure applicants meet the required membership period
• Collect income documentation to assess repayment ability without burdensome paperwork
• Streamline the application process so members can apply online 24/7
• Maintain compliance with PAL I and PAL II program requirements
• Reduce processing time with conditional logic that adapts to each applicant's situation

Key Features for Credit Union Operations

Member-First Design: The form uses friendly, accessible language that reflects credit union values of service over profit. Questions are structured to be respectful and clear, reducing anxiety for members who may be experiencing financial stress.

Smart Conditional Logic: The template includes intelligent branching that shows relevant questions based on loan type (PAL I vs PAL II), employment status, and income sources. This creates a streamlined experience that doesn't overwhelm applicants with unnecessary fields.

Income Verification Options: Rather than requiring in-person document submission, the form allows members to upload pay stubs, bank statements, or other income documentation directly through secure file upload fields. This speeds up the verification process and improves member convenience.

Calculation-Ready Fields: Built-in calculation logic helps loan officers quickly assess debt-to-income ratios and loan affordability based on the information provided.

Perfect for Multiple Credit Union Departments

This template serves several functions within your credit union:

• Member Services: Front-line staff can direct members to the online application, reducing wait times and phone volume
• Lending Department: Loan officers receive structured, complete applications that include all necessary documentation
• Compliance: Built-in fields ensure you're collecting required information per NCUA regulations
• Collections/Recovery: By offering PALs, you help members avoid external payday lenders and potential financial hardship

Automate Your PAL Workflow with Stepper

Once a member submits their PAL application through Paperform, you can use Stepper to automate the entire approval workflow. Set up processes that:

• Send applications to loan officers for review
• Request additional documentation if needed
• Route to underwriting based on loan amount
• Notify members of approval status
• Trigger loan disbursement processes
• Schedule follow-up communications

This automation reduces manual work and ensures members receive fast responses when they need financial assistance most.

Integrate with Your Credit Union Core System

Paperform integrates with popular credit union management systems and core platforms, allowing you to automatically sync application data with member records. Connect with tools like HubSpot for CRM tracking, Google Sheets for application tracking, or use webhooks to push data directly into your core system.

Compliance and Security

Financial institutions need to trust their technology stack. Paperform is SOC 2 Type II compliant and offers robust security features including data encryption, SSL, and secure file uploads. While Paperform is not HIPAA compliant, it meets the security standards required for financial applications and sensitive member information.

Designed for Financial Inclusion

PAL programs represent credit unions' commitment to financial inclusion and member wellbeing. This form template embodies those values by making the application process accessible, transparent, and respectful. By reducing barriers to application and speeding up approval times, you can help more members access affordable credit when they need it most.

Who Should Use This Template

This PAL application form is ideal for:

• Federal credit unions offering PAL I or PAL II programs
• Member services directors looking to digitize loan applications
• Lending managers who want to reduce application processing time
• Compliance officers ensuring NCUA regulation adherence
• Credit union marketers promoting alternatives to payday lending

Whether you're launching a new PAL program or modernizing an existing one, this template provides a professional, member-friendly starting point that can be customized to match your credit union's specific requirements and branding.

Start helping your members access fair, affordable loans today with this comprehensive PAL application template.