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Compare payday loans in Alabama

Though short-term loans are legal, watch out for high costs.

While payday loans are legal in Alabama, the high rates and fees often lead to APRs in the triple digits. Before you borrow, make sure you can afford repayments to avoid ending up in a cycle of debt.

Name Product Filter Values Loan amount Turnaround time Requirements
Brigit
Up to $250
1 to 3 days or same-day in some circumstances
Bank account must have at least 60 days of activity, Balance must be above $0 and have an average minimum balance on pay day
Have up to $250 automatically deposited into your account — for a $9.99 membership fee.
OppLoans Installment Loans
$500 to $4,000
1 business day
+18 years old, Direct deposit, Meet minimum income requirements, Live in eligible state
Comes with the option to change your due date so you won’t fall behind on repayments.
Possible Finance Mobile Installment Loans
Up to $500
As fast as 1 business day
Checking account with 3+ months of banking history, $750+ monthly income, live in eligible state, ages 18+
Borrow up to $500 with just a few swipes — but only for residents of 21 states.
LendYou Short-term Loans
$100 to $2,500
Same business day to 1 business day
$1,000+ monthly income, direct deposit, US citizen or permanent resident, ages 18+
Get offers from potential lenders in minutes by filling out just one online form.
MoneyLion Instacash advances
$250, $300 with RoarMoney account
3 to 5 business days to external checking account, 12 to 48 hours to RoarMoney account
Bank account must have at least 60 days of activity, show recurring deposits and must have a positive balance
Fee-free, interest-free cash advances up to $250.
Brigit
Up to $250
1 to 3 days or same-day in some circumstances
Bank account must have at least 60 days of activity, Balance must be above $0 and have an average minimum balance on pay day
Have up to $250 automatically deposited into your account — for a $9.99 membership fee.
OppLoans Installment Loans
$500 to $4,000
1 business day
+18 years old, Direct deposit, Meet minimum income requirements, Live in eligible state
Comes with the option to change your due date so you won’t fall behind on repayments.
Possible Finance Mobile Installment Loans
Up to $500
As fast as 1 business day
Checking account with 3+ months of banking history, $750+ monthly income, live in eligible state, ages 18+
Borrow up to $500 with just a few swipes — but only for residents of 21 states.
LendYou Short-term Loans
$100 to $2,500
Same business day to 1 business day
$1,000+ monthly income, direct deposit, US citizen or permanent resident, ages 18+
Get offers from potential lenders in minutes by filling out just one online form.
MoneyLion Instacash advances
$250, $300 with RoarMoney account
3 to 5 business days to external checking account, 12 to 48 hours to RoarMoney account
Bank account must have at least 60 days of activity, show recurring deposits and must have a positive balance
Fee-free, interest-free cash advances up to $250.
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Can I get a payday loan in Alabama?

Yes, payday loans are legal in Alabama and governed by state statute 5-18A-1 et seq. The laws are the same for both storefront locations and online lenders, and lenders are required to have a valid license when operating in Alabama.

The maximum amount payday lenders are allowed to offer is $500 with a maximum APR of 456.25%. Terms can range from 10 to 31 days, and you can roll over your loan once.

More regulations coming soon

Because payday loans come with such high costs that can be difficult to pay back on schedule, borrowers often find themselves in a cycle of debt — having to borrow more to pay back their current loan. Because of this, Alabama lawmakers are considering limiting the number of payday loans you’re able to borrow per year. This isn’t set to change for another few years, but keep an eye out.

What will I have to pay for a loan?

Whenever you borrow money from a payday lender, expect to pay high rates and fees. You may also be charged a fee for making a late payment or extending your loan term.

  • Financing fees: Payday lenders in Alabama can charge 17.5% of the amount you borrow in financing fees. The maximum charge for a 14-day $100 loan cannot exceed $17.50.
  • Nonsufficient funds (NSF) fees: A lender can charge you a $30 NSF fee if there are insufficient funds in your account when it cashes your check or attempts to withdraw the owed amount from your bank account.
  • Default fees: A lender can charge 3% per month if you default on the loan, beginning on the date of default.
  • Loan extension fees: You can extend your payday loan with your lender once. You might have to pay a fee for the new deferred transaction.
  • Collection fees: Lenders can charge court costs as well as reasonable attorney’s fees limited to 15% of the check’s face value.

What should I consider before getting a payday loan?

Payday loans can be dangerous if you aren’t prepared for the high fees that come with them. As with all credit products, be sure you can repay what you borrow before you sign a contract.

If you’re just struggling to cover day-to-day expenses, state programs like the Alabama Department of Human Resources Food Assistance Division, Alabama Medicaid Agency, Low Income Home Energy Assistance Program (LIHEAP) and Debt Reduction Services may be able to help.

Don’t forget to look into alternatives to a payday loan before you apply

Common application criteria

While eligibility criteria vary by lender, you typically need to meet the following requirements:

  • Steady source of income
  • At least 19 years old
  • US citizen or permanent resident

When applying, you’ll likely have to provide personal information, including your Social Security number and bank account details. Have these and other documents — like your government-issued ID — on hand to speed up the application process.

Minimum age to get a loan in Alabama

Alabama’s minimum age to take out a loan is 19 — compared to 18 in most other states. If you’re 18 years old and need a loan in Alabama, you’ll have to wait until your next birthday or apply for a loan with a cosigner.

Payday loan locations in Alabama

Bottom line

While payday loans are legal in Alabama, they’re best saved as a last resort due to the high costs and short terms. Learn more about how they work with our guide to payday loans.

Frequently asked questions

  • How long does it take to complete a typical application?

If you have all the required information, you can complete most applications in 10 to 15 minutes.

  • What happens if I can’t repay my loan even after I roll it over?

Your lender may be willing to put you on an extended repayment plan that consists of four equal monthly installments. Reach out to your lender to review your options.

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    2 Responses

      Default Gravatar
      JrodMarch 18, 2017

      If I live in Georgia can I go to Alabama and get a payday loan and if I can which is a good company?

        Avatarfinder Customer Care
        HaroldJuly 13, 2017Staff

        Hi Jrod,

        Thank you for your inquiry.

        Generally, you can can get a loan from the the state where you have the permanent residency. You can always clarify this with your preferred lender in Alabama for further verification.

        I hope this information has helped.

        Cheers,
        Harold

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