What are Allotment Loans?

Allotment loans are a unique type of loan available to federal government employees, including postal workers.

They provide an alternative to traditional personal loans that don’t require a credit check, with the loan amount directly deducted from the borrower’s salary in equal installments.

This Article will explore the types of allotment loans, their advantages and disadvantages, eligibility criteria, and how to apply for one.

Types of Allotment Loans

Allotment loans can be classified into two categories: voluntary allotment loans and non-voluntary allotment loans.

Voluntary Allotment Loans

These loans are taken out by the employee voluntarily.

They can be used for any purpose, such as consolidating debts, repairing your transportation to get to work, financing a large purchase, or covering unexpected expenses.

The borrower has more control over the repayment terms and can choose the repayment period and installment amount.

FedLendr.com specializes in Voluntary Allotment Loans.

Non-Voluntary Allotment Loans

Non-voluntary allotment loans, also known as involuntary allotment loans, are typically court-ordered or required by law.

They can be used to pay off child support, alimony, tax liens, or other legal obligations. The repayment terms for these loans are determined by the court or the legal agreement.

Advantages of Allotment Loans

Easy Access to Funds

Allotment loans provide federal government, for example, postal workers, a convenient and accessible way to obtain funds quickly, easily, and without credit checks!

By using FedLendR.com, it’s a simple 2-minute form leading to cash in your bank account or on your debit card; YOUR CHOICE!

This can be particularly helpful for those with less-than-perfect credit or who need access to funds quickly.

Competitive Interest Rates

Since allotment loans are geared toward federal employees, they often come with competitive interest rates compared to traditional personal loans.

This often helps borrowers save on interest costs over the life of the loan.

Streamlined Repayment Process

With allotment loans, repayment is streamlined as the loan amount is directly deducted from the borrower’s salary.

This eliminates the need to remember to make payments, reducing the risk of missed payments and late fees.

Disadvantages of Allotment Loans

Limited Lenders

Allotment loans are a niche product, so there may be fewer lenders to choose from compared to traditional personal loans.

This can limit borrowers’ options when searching for the best loan terms and interest rates.

FedLendR.com solves this issue for you!

Potential for Overborrowing

Since the loan amount is directly deducted from the borrower’s salary, there is a risk of overborrowing.

Borrowers may be tempted to take out larger loans than they can afford, leading to financial strain and difficulty repaying the loan.

Eligibility Criteria for Allotment Loans

To be eligible for an allotment loan, applicants must meet specific requirements. These include:

  1. Being a current employee of the federal government, like a postal worker
  2. Having a stable employment history and income
  3. Meeting any income requirements set by the lender

It’s important to note that eligibility criteria vary between lenders, so carefully review the requirements before applying.

How to Apply for Federal Employee Allotment Loans

Determine Your Loan Needs

Before applying for an allotment loan, assess your financial needs and determine how much you need to borrow.

This will help you avoid overborrowing and ensure you can comfortably manage the loan repayments.

Find a Reputable Lender

As mentioned earlier, federal allotment loans are a niche product not all lenders offer them.

Do thorough research to find a reputable lender specializing in allotment loans for federal government and postal workers.

Compare interest rates, fees, and terms to find the best option. FedLendeR.com is your connection to a Lender!

Complete our Short Application Process

Once you’ve chosen FedLendR.com, complete the application process by providing the necessary docs and information.

Basically, proof of employment and income verification.

Upon approval, the lender will set up the allotment to be deducted from your salary, and you’ll receive the loan funds.


Allotment loans can be a helpful financial tool for federal government workers needing funds for various purposes. With competitive interest rates and a streamlined repayment process, they offer several advantages over traditional personal loans.

However, borrowers should carefully consider their financial needs, research reputable lenders, and be mindful of the potential risks associated with overborrowing.

Follow the steps in our Article, and you’ll be well-equipped to decide whether an allotment loan is right for you.


  1. Are allotment loans only available to federal government and postal workers? Yes, allotment loans are specifically designed for employees of the federal government, including postal workers.

  2. Can I use an allotment loan for any purpose? Voluntary allotment loans can be used for any purpose, while non-voluntary allotment loans are typically used to satisfy court-ordered or legally mandated payments.

  3. Do allotment loans require a credit check? Lenders offering allotment loans may require a credit check, but this will vary depending on the lender’s policies and eligibility criteria.

  4. Can I pay off an allotment loan early? Depending on the terms of the loan, you may be able to pay off an allotment loan early. Be sure to review the loan agreement for any prepayment penalties or fees.

  5. How long does it take to receive funds from an allotment loan? The time it takes to receive funds from an allotment loan may vary depending on the lender and your individual circumstances. In general, borrowers can expect to receive funds within a few business days after approval.