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What Alabama law allows
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Title loans[1][2][3] | Allowed | 300% APR | Not set by statute | Not set by statute | Pawnbroker license issued by the Alabama State Banking Department | Ala. Code Section 5-19A-1 et seq. |
| Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow. | ||||||
Bars place each APR cap on a 0 to 400% scale; the pin marks the cap. A striped bar means the statute sets no numeric cap.
The rules in full
Title loans
- Rate cap
- Title loans are regulated as pawn transactions under the Alabama Pawnshop Act (Ala. Code Section 5-19A-1 et seq.), which allows pawnbrokers to charge up to 25% per month on the principal amount.
- Fees
- Up to 25% of principal per month; no separate statutory cap identified beyond the pawn-transaction rate.
- License
- Pawnbroker license issued by the Alabama State Banking Department (title lenders are licensed and regulated as pawnbrokers).
Full detail for every loan type: Alabama lending laws.
Help in Alabama
Money snapshot for Alabama
Other options in Alabama
Worth checking whatever your credit: these can cost less than a high-rate loan.
- Emergency loans in Alabama: allowed under Alabama law; see its limits and license rules.
- Installment loans in Alabama: allowed under Alabama law; see its limits and license rules.
- Payday loans in Alabama: allowed under Alabama law; see its limits and license rules.
- Personal loans in Alabama: allowed under Alabama law; see its limits and license rules.
- Credit union payday alternative loans (PALs). Federal credit unions may offer small loans of up to $2,000 with terms of up to 12 months and an APR no higher than 28%, under NCUA rules (12 CFR 701.21). You usually need to be a member.
- Nonprofit credit counseling. A counselor accredited by the National Foundation for Credit Counseling can help you build a budget or a debt management plan.
- Ask your creditor for a payment plan. Utilities, hospitals and many lenders offer hardship or extended payment plans if you ask before you miss a payment.
- Local assistance. Call 211, or visit 211.org, for emergency help with rent, utilities and food in Alabama.
Title loans in nearby states
- MississippiAllowed 300% APR
- GeorgiaAllowed Cap set in statute
- TennesseeAllowed 24% APR
- LouisianaAllowed Tiered cap
- KentuckyRestricted 36% APR
Sources
- banking.alabama.gov. Ala. Code Section 5-19A-1 et seq.. Retrieved September 23, 2026.
- Justia. law.justia.com/codes/alabama/title-5/chapter-19a. 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. Census Bureau, Population Division. Vintage 2024 National and State Population Estimates. 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.
Representative example
- Amount borrowed
- $1,000
- Annual percentage rate (APR)
- 300%
- Repayment
- 12 monthly payments
- Payment
- $268.45
- Finance charge
- $2,221.40
- Total of payments
- $3,221.40
Example: a $1,000 title loan at 300% APR repaid in 12 monthly payments of $268.45 costs $3,221.40 in total, including a finance charge of $2,221.40. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
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- Questions about a lender licensed in Alabama? Contact the Alabama State Banking Department or file a state complaint.
- You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.