What Alabama law allows
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Payday loans[1][2] | AllowedHigh-cost loan | Not verified | Up to $500 | 10 days to 31 days | Deferred Presentment Provider license | Ala. Code Section 5-18A-1 et seq. |
| Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow. | ||||||
The rules in full
Payday loans
- Fees
- Deferred Presentment Services Act (Ala. Code Section 5-18A-1 et seq.) caps the fee at 17.5% of the amount advanced (i.e., $17.50 per $100 borrowed) per loan term.
- License
- Deferred Presentment Provider license issued by the Alabama State Banking Department, Bureau of Loans.
Full detail for every loan type: Alabama lending laws.
Help in Alabama
Rent and jobs in Alabama
Typical rent and the jobless rate, to weigh before a loan payment.
Other options in Alabama
Cheaper options to try first
Worth checking whatever your credit: these can cost less than a high-rate loan.
- Credit union payday alternative loans (PALs), capped at 28% APR under NCUA rules (12 CFR 701.21).
- Nonprofit credit counseling through the National Foundation for Credit Counseling.
- A payment plan from the company you owe, if you ask before you miss a payment.
- 211 for help with rent, utilities and food: call 211 or visit 211.org.
More cheaper options in Alabama.
Other loan types allowed in Alabama
Payday loans in nearby states
- MississippiAllowedHigh-cost loan See the rules
- GeorgiaNot allowed Not allowed
- TennesseeAllowedHigh-cost loan Fee cap
- LouisianaAllowedHigh-cost loan Fee cap
- KentuckyAllowedHigh-cost loan Fee cap
Sources
- banking.alabama.gov. Ala. Code Section 5-18A-1 et seq.. Retrieved September 23, 2026.
- banking.alabama.gov. Alabama State Banking Department, Bureau of Loans. Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: Alabama. Retrieved September 23, 2026.
- U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.
Important disclosures
APRs vary by lender and state in Alabama. Each lender sets its own rates and terms and must show you the APR before you sign.
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- Questions about a lender licensed in Alabama? Contact the Alabama State Banking Department, Bureau of Loans or file a state complaint.
- You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.