What is an allotment loan?

An allotment loan is a personal installment loan for federal government employees and USPS workers where repayment is handled through voluntary payroll deduction. A fixed amount is taken from each paycheck before it reaches your bank account.

How quickly can I get funded?

After a lender reviews your information and you accept an offer, funds may be available as soon as the next business day. Exact timing depends on the lender and your bank's processing schedule.

Will this hurt my credit score?

The initial application at FedLendr does not affect your credit score. If you accept an offer and proceed with a lender, that lender may perform additional verification. Ask the lender directly about their credit review policy before accepting.

Who is eligible to apply?

Current civilian federal government employees and USPS workers who are actively employed and receiving pay through federal payroll. Some lenders also work with retired federal employees receiving OPM pension payments. Active duty military members are not eligible under the Military Lending Act.

How does payroll allotment repayment work?

You authorize a voluntary payroll allotment through your agency's payroll system (NFC for most federal agencies, LiteBlue for USPS). A fixed dollar amount is deducted from each paycheck and sent directly to the lender. If you leave federal service, contact the lender to arrange an alternative repayment method.

Is my information secure?

Yes. The application uses 256-bit SSL encryption. Your data is transmitted securely and shared only with the lender reviewing your application.

What if I do not receive an offer?

Not all applicants will receive an offer. If no lender extends an offer, you will not be charged anything and your information is not shared further.

What happens to my allotment loan during a government shutdown?

Existing allotment loans continue as scheduled once pay resumes. If you are concerned about a potential shutdown, contact your lender directly to discuss options. Many lenders who specialize in federal employees have policies for this situation.

Is FedLendr a lender?

No. FedLendr is not a lender and does not make credit decisions. We are a lead generator that connects federal employees and USPS workers with independent lending partners. All lending decisions are made by the individual lender.

payroll deduction loans Archives

Best Allotment Loans for Federal Employees (2026)

Last updated: June 2026 Best Allotment Loans for Federal Employees (2026) Written by Jer Ayles | 20+ years in consumer lending | About FedLendR The best allotment loan for a federal employee is one that bases approval on your government paycheck, not your credit score, and repays itself automatically through payroll deduction, so you never […]