Know the regulations in your city — and where you can find legit lenders — before you borrow.
There are plenty of lenders in Montgomery and the surrounding area that offer short-term loans to borrowers who may not have the best credit. But rather than going in blind, take the time to compare your options and learn how to spot a good deal so you can make the best financial decision for your budget.
Our top pick: OppLoans Installment Loans
- Easy online application
- Quick approval
- Fast funding
- Long repayment terms
Our top pick: OppLoans Installment Loans
- Min. Loan Amount: $500
- Max. Loan Amount: $5,000
- Turnaround Time: 1 business day
- Loan Term: 9 to 36 months
- Requirements: Direct deposit, meet minimum income requirements
Can I get a payday loan in Montgomery, Alabama?
Yes, payday loans are legal in Montgomery under Alabama Code Chapter 18A Section 5-18A-1 et seq.
Borrowers may borrow up to $500 with a term between 10 to 31 days. There is no maximum limit on the amount of payday loans you can have at once, however, you won’t be able to borrow more than $500. You are also be limited to one rollover if you aren’t able to repay your loan by its due date, and there is a one business day “cooling off” period after you repay two consecutive loans.
Lenders can charge an interest rate of 17.5%, which often results in an APR of 400%. In addition, they are also able to charge 3% a month in interest if you default on your loan. You may be responsible for a non-sufficient funds (NSF) fee of up to $30 if you don’t have enough in your account to cover repayment.
Must read: Extended terms may be coming
In an attempt to help borrowers avoid high interest and the risk of default, lawmakers in Alabama have recently approved of a payday loan reform bill that would extend the repayment period. Instead of lasting 10 to 31 days — which can make repaying a loan difficult for people who struggle financially — lenders would have to give borrowers a loan term 30 days to 6 months.
This would reduce the APR of a payday loan down from over 400% to around 120%, making them much more affordable. And because of this, payday loans would start looking much more like installment loans, which are often marketed as a cheaper way to borrow a small amount of the short-term.
Consider these lenders for a payday loan in Montgomery
What do I need to apply?
To qualify for a payday loan, lenders require that you have a regular source of income, are a US citizen or permanent resident and are at least 18 years old.
You’ll also have to provide some basic information so your lender can process your loan request. This includes:
- Your name, date of birth, Social Security number and contact information
- Your employer’s name, address and phone number
- Your monthly income and your pay schedule
- If applying online, your bank account details
The exact details you need to supply vary by lender, so check with yours to make sure you meet its eligibility criteria.
Where to find short-term loan locations in Montgomery
Short-term loan locations near me in Montgomery, AL
Advance America. 6533 Atlanta Hwy, Montgomery, AL 36117- Always Money. 2851 E South Blvd A, Montgomery, AL 36116
- Approved Cash. 5883 Atlanta Hwy, Montgomery, AL 36117
- Check ‘n Go. 2851 E South Blvd C, Montgomery, AL 36116
- Check into Cash. Bell Plaza Shopping Center, Montgomery, AL 36117
- Easy Money. 1102 Ann St, Montgomery, AL 36107
- Emergi Cash Corporation. 4240 Carmichael Rd, Montgomery, AL 36106
- EZMONEY Payday Loans. 979 Ann St, Montgomery, AL 36107
- Great American Loans. 2975 Woodley Rd, Montgomery, AL 36111
- Speedy Cash. 1501 Eastern Blvd, Montgomery, AL 36117
Must read: Be cautious of short terms
Lenders can charge fees equal to 17.5% of your loan amount. While it may not seem like a lot, it means you’ll end up paying $87.50 in interest. And since loan terms are currently set a minimum of 10 days, you might have to repay your full loan amount — that’s $587.50 — in less than two weeks.
If you’re already struggling with balancing your budget, it may be wise to consider a short-term loan that lasts longer or check out some of our payday loan alternatives before you borrow.
What are my other short-term loan options?
If you want more than $500 or a longer term, these short-term loans may better suit your needs.
- Installment loans. Installment loans — sometimes called flex loans — are generally for larger amounts than payday loans. And typically, you won’t have to repay them for at least six months. Installment loans can be found online and at multiple storefronts throughout Montgomery.
- Auto title loans. Auto title loans are sometimes cheaper than payday loans because you use your car title as collateral. Lenders may also offer you more money or a longer term, but be careful: If you can’t repay your loan, you may have your vehicle repossessed.
Compare payday loan alternatives in Alabama
Bottom line
Payday loans are widely available in Montgomery and other cities in Alabama. But with minimal regulations on interest, you may find that repaying your loan is difficult, especially if you receive a loan term on the shorter end of the legal limit.
Before you borrow, be sure you know the regulations in Alabama. You may also want to compare your payday loan options so that you know exactly what kind of deal you’re getting — and how it stacks up against the competition.
Frequently asked questions
Where else are payday loans available?
