Alabama Payday Loans

Ala. Code §§ 5-18A-1 et seq.
Status: Legal

Payday loans (cash advances) are legal in the state of Alabama according to the Alabama Small Loan Act, 5-18A-1 et seq. In 2016 there were over 1,000 payday loan lenders throughout the state. The regulation and supervision of cash advance loans in the state is overseen by the Alabama Banking Department. This organization provides education information on laws, regulations, and banking reports for the state.

Once you apply for a payday loan you will normally be approved within 24 hours and can receive the cash by the next day. Don't worry your credit isn't checked so if you're starting your credit history or are rebuilding your credit you should still be approved.

Alabama Regulations

It has been deemed that there is significant demand for small loans within the state of Alabama but various regulations are necessary to minimize exploitation of borrowers. The legislation imposes restrictions on lenders to insure honest loan services while providing an opportunity for borrowers to access loans at reasonable rates and terms.

In Alabama the maximum loan amount is $500 and the minimum loan length is 10 days and the maximum loan length is 31 days. If you were to borrow $100 from a payday lender in Alabama then the finance charge after 14 days would be $17.50 (17.5%). There is no maximum amount of loans you can have out at one time, but there is a maximum dollar value of loans you can have out which is $500. You can rollover a loan one time, although it is recommended that you pay the loan in full when it is due.


To apply for a payday loan in the state of Alabama, the borrower must meet these requirements:

  • Be 18 years of age.
  • Be a US resident, with a fixed address in Alabama.
  • Be employed or self-employed or have a monthly source of income of at least $1,000.
  • Have a checking account.

Lending Rules*

Lenders in the state of Alabama are legally required to comply by the following limitations according to Ala. Code §§ 5-18A-1 et seq.:

Maximum Loan Amount:
Minimum Length of Loan:
10 days
Maximum Length of Loan:
31 days
Maximum Finance Rate & Fees:
17.50%; 3%/month after default
Finance Charge for 14-day $100 Loan:
APR for 14-day $100 Loan:
Max # Outstanding Loans at One Time:
None (max $ amount of loans at one time: $500)
Rollovers Permitted:
One (rollover)
Repayment Plan:
Collection Fees:
One $30 NSF fee; Court Costs; Reasonable Attorney's Fees up to 15% of face amount of check
Criminal Action:
Prohibited (Unless check returned due to closed account)
*The information displayed may not be current. For the most recent information, please visit

Regulatory Information

If you have a complaint against a Alabama Cash Advance location you can contact your state regulator below:

Alabama Banking Department
P.O. Box 4600 Montgomery AL 36103
(334) 242-3452
(334) 353-5961

Alabama Lenders

Below you can find Alabama payday loan lenders in the following cities:

Alabama Statistics**

The following information is key demographic data for the state of Alabama from the Census bureau.

Total Population:
Median Household Income:
Poverty Rate:
Median Gross Rent:
High School Graduate or Higher:
Bachelor's Degree or Higher:
**The information displayed may not be current. For the most recent information, please visit

Borrow Responsibly

Payday loans are meant to be short term loans to meet your obligation until the next paycheck. It is in your best interest to pay these loans in full by their loan terms. Please make sure to read all of the terms and conditions on the loan and according to Alabama regulations. Also make sure to make the payment at the set date of the loan. If you need an extension you should contact the lender by phone to ask for one. However, it is strongly recommended that you pay off the loan in full within the set time frame to avoid high interest payments. is an independent comparison service provider. Reasonable efforts have been made to maintain accurate information throughout our website; however, all information is presented without warranty or guarantee. may receive compensation from our partners, including, but not limited to, clicking on links and lead generation.