Loan size: $1,000
A $1,000 Loan, Worked Out
A thousand dollars sits exactly at the top of one federal credit union loan program and in the middle of another. Which one you use, and which state rules apply, changes the payment more than the rate does.
By Lendarbor Editorial Team Updated 6 min read
- Example payment
- $90.26 a month
- Typical term
- 6 to 24 months
- Where to look
- Credit unions, banks
- PAL I range
- $200 to $1,000
In one ring
At 15% APR over 12 months, $1,000 costs $90.26 a month and $83.10 in interest. At a federal credit union, $1,000 is the largest PAL I loan (repaid in up to six months) and a mid-sized PAL II loan (up to 12 months), both at no more than 28% APR. A six-month PAL I at 28% costs $180.54 a month; a 12-month PAL II costs $96.51. State small-loan laws also draw lines near this size. All figures are worked examples with a fixed rate, equal monthly payments and no fees unless stated.
What $1,000 costs at different rates and terms
Monthly payment and, in brackets, total interest on $1,000 at fixed rates, with equal monthly payments and no fees. These are worked examples from the standard amortization formula, not offers. Test other rates in the payment by loan size calculator.
| APR | 6 months | 12 months | 24 months |
|---|---|---|---|
| 15% | $174.03 ($44.20 interest) | $90.26 ($83.10) | $48.49 ($163.68) |
| 18% | $175.53 ($53.15) | $91.68 ($100.16) | $49.92 ($198.18) |
| 28% | $180.54 ($83.24) | $96.51 ($158.07) | $54.89 ($317.32) |
| 36% | $184.60 ($107.59) | $100.46 ($205.55) | $59.05 ($417.14) |
Doubling the term roughly doubles the interest: at 15% APR, 12 months costs $83.10 and 24 months $163.68. At this size those are modest sums, so the useful question is which payment you can make every month without borrowing again. Two years is about as long as a $1,000 loan should run; a 12-month term usually fits.
PAL I or PAL II: two ways to borrow $1,000
Federal credit unions can offer two versions of the payday alternative loan under National Credit Union Administration rules. Many credit unions offer only one, so ask which.
| Rule | PAL I | PAL II |
|---|---|---|
| Amount | $200 to $1,000 | Up to $2,000 |
| Term | 1 to 6 months | 1 to 12 months |
| Membership first | At least 1 month | No waiting period |
| Highest APR | 28% | 28% |
| Application fee | Up to $20 | Up to $20 |
| How many | One at a time; 3 in 6 months | Same limit, counted together |
Both must be repaid in installments and cannot be rolled over. At 28%, a six-month PAL I of $1,000 costs $180.54 a month and $83.24 in interest. A 12-month PAL II costs $96.51 a month and $158.07: about $75 more interest for a payment $84 lower. Here is the six-month loan month by month; the whole loan lives inside half of a single ring.
| Month | Principal repaid | Interest paid | Balance after payment |
|---|---|---|---|
| 1 | $157.21 | $23.33 | $842.79 |
| 2 | $160.87 | $19.67 | $681.92 |
| 3 | $164.63 | $15.91 | $517.29 |
| 4 | $168.47 | $12.07 | $348.82 |
| 5 | $172.40 | $8.14 | $176.42 |
| 6 | $176.42 | $4.12 | $0 |
Credit union loans beyond PALs
A PAL is not your only option at a credit union. Most other federal credit union loans are capped at 18% APR, a temporary ceiling the NCUA Board has extended through September 10, 2027. A $1,000 loan at 18% over 12 months costs $91.68 a month and $100.16 in interest, only about $17 more than the six-month PAL I at 28%, with a payment about half the size. Ask whether the credit union makes small personal loans or loans secured by money in your savings account; a secured loan is often priced lower. TrustCedar compares a personal loan with a PAL.
State small-loan laws at $1,000
States license consumer finance companies under small-loan or consumer-loan laws, and many set the charges a lender may collect by the size of the loan. A few hundred dollars can move a loan from one set of rules to another. Two examples:
- Texas. The Office of Consumer Credit Commissioner adjusts the dollar ceilings each year. For loans made from July 1, 2026 through June 30, 2027, the small-loan rules that allow an acquisition charge use ceilings of $920 (Finance Code section 342.251) and $1,840 for larger cash advances (section 342.259). A $1,000 cash advance is above the first ceiling, so a licensed Texas lender prices it under the larger-advance section or the regular rate brackets, each with its own charges.
- California. The California Financing Law caps loans of $2,500 to less than $10,000 at 36% a year plus the federal funds rate. A $1,000 loan from a licensed finance lender sits below that band, under the law's separate schedule of charges for smaller loans.
Payday and title loans follow their own state laws; Lendmira lists them by state, starting with Texas. For installment-loan rate caps in every state, see LendCedar's state rules. Active-duty servicemembers and their dependents also have the Military Lending Act's 36% cap on most consumer credit. Loan amount and the law collects the thresholds.
The income a $1,000 payment needs
Lenders compare your monthly debt payments with your gross monthly income. With a $1,200 rent payment and $400 of other monthly debts, the six-month PAL I payment fits a 36% limit at about $4,946 of monthly income; the 12-month PAL II payment at about $4,713. The shorter loan asks for about $233 more income a month. PAL rules also require the credit union to have underwriting guidelines, such as documenting your income. Run your own figures in the borrowing room calculator.
Fees and the amount to request
A $20 PAL application fee is 2% of $1,000. If it came out of the loan, you would receive $980 and repay $180.54 a month over six months, an effective cost of about 35.3% a year in this worked example. That is above the 28% rate; the disclosed APR may leave an application fee out, so ask how it is charged.
Some online lenders that make loans this small deduct an origination fee. With a 6% fee, $1,000 puts $940 in your account. To receive $1,000, you would request about $1,063.83. The amount to request calculator does this gross-up.
- Ask your credit union whether it offers PAL I, PAL II or both, and how long you must be a member.
- Compare a 6-month and a 12-month payment against an ordinary month's budget.
- Read the total of payments in the Truth in Lending disclosure before you sign.
Questions people ask
How much is a $1,000 loan per month?
At 15% APR with no fees, $90.26 a month over 12 months or $48.49 over 24. At 28%, $180.54 over six months or $96.51 over 12. These are worked examples, not offers.
Can I get a $1,000 PAL if I just joined a credit union?
A PAL I needs at least one month of membership. A PAL II has no waiting period, so a credit union that offers it can lend $1,000 to a new member if you meet its other standards.
Is $1,000 the largest PAL?
It is the largest PAL I. A PAL II can go up to $2,000 over as long as 12 months; see the $2,000 loan page.
Where the numbers come from
- NCUA, Permissible Loan Interest Rate Ceiling Extended (18% ceiling; 28% on payday alternative loans)
- 12 CFR 701.21(c)(7)(iii)–(iv), payday alternative loans (Cornell LII copy of the rule)
- Texas Office of Consumer Credit Commissioner, rate bracket adjustments (February 4, 2026)
- California DFPI, requirements for licensees making consumer loans of $2,500 to $10,000
- Consumer Financial Protection Bureau, the Military Lending Act
Payments and interest computed by Lendarbor with the standard amortization formula. Facts checked November 12, 2026.
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Next rings to read
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Loan size
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$2,000 personal loans
The top of the credit union PAL: $96.97 a month over 24 months at 15% APR, and when to switch to an installment loan.
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Sizing guide
Loan amount and the law
The $73,400 Truth in Lending line for 2026, PALs up to $2,000, and state caps that shift at $2,500, $10,000, $12,000.