This guide gives you all the information you need about short term loans in Alabama.
Short term loans, also known as payday loans, have been under a lot of scrutiny. However, you may still find yourself in need of one due to a financial emergency. In Alabama, you can still obtain a short term loan. Luckily, there are legal limitations meant to protect consumers that lenders must follow.
Apply for a payday loan, installment loan or line of credit conveniently online and enjoy great customer service.
- Minimum loan amount: $200
- Maximum loan amount: $1,000 (unless otherwise stated)
- Turnaround time: As soon as 1 business day*, depending on your bank's policies
- Loan term: Varies by state
- Good credit not required
- Confidential and secure
- Must have a valid bank account, phone number and email address
- Must be 18+ years old and have a regular source of income
A selection of short term loans available in Alabama
Check the websites of any providers you’re interested in to confirm they operate in your state of residence.
Are payday loans legal in Alabama?
Yes, payday loans are legal in Alabama. The same Alabama payday loan laws apply for both storefront, and online locations. Lenders are required to have a valid license in each store they offer loans. Payday loans are regulated to a maximum amount of $500 and a maximum APR for a $100 loan of 456.25%. Terms can be as few as 10 days, up to 31, and one rollover is permitted.
Why consider a short term loan in Alabama?
Here are some of the features that come with Alabama short term loans:
- Bad credit borrowers can apply. Short term lenders in Alabama have more flexible lending criteria than mainstream banks. As long as you are able to manage the loan repayments you can apply for a short term loan.
- Apply from anywhere. While you always have the option of applying for a loan from a short term lender’s store, you can also apply online. This means you can apply for a loan no matter where you are, as long as you have documents that show you are a resident of Alabama.
- Receive your loan quickly. If you apply in-store, you can receive your loan in under an hour, while online lenders usually transfer your loan to you on the same day or by the next business day.
- Use your funds in any way. Short term lenders give borrowers the freedom to do what they want with their funds. You can use the money to repair your car, have a night out, buy a gift, pay bills or simply get by until your next payday.
What fees and charges do Alabama short term loans come with?
Here are the fees and charges to expect when you take out a short term loan in Alabama:
- Annual Percentage Rate (APR). The maximum APR of a 14-day $100 payday loan in Alabama is 456.25%. The APR for a 30-day loan is 206.05%.
- Fees and charges. Payday lenders in Alabama can charge 17.50% of the loan in fees, so the maximum finance charge for a 14-day $100 loan cannot exceed $17.50. A lender can also charge 3% per month if you default on the loan, which is charged from the date of the default.
- Loan extension fees. You can extend your payday loan with your lender only once, and you’ll have to pay a fee for the new deferred transaction. The lender can also charge you a non-sufficient funds (NSF) fee if there are insufficient funds in your account when you present your check.
- Collection fees. Payday lenders in Alabama can charge a one-off $30 NSF fee. They can charge court costs as well as “reasonable” attorney’s fees limited to 15% of the check’s face value.
- Early repayment fees. You can repay your Alabama payday loan ahead of schedule without incurring any additional fees.
Here’s how to apply for an Alabama short term loan
You can apply for an Alabama short term loan online or by visiting a store. Eligibility criteria will differ between lenders, but the following is likely to apply:
- You should be at least 18 years of age
- You must be an American citizen or a permanent resident of the US
- You need to have a steady source of income
To complete the application, you have to provide the following information:
- Your name, date of birth, social security number and a valid form of ID such as your driver’s license or passport
- Your residential address, email address and phone number
- Details about your employment and income
- If you’re applying online, details of your existing checking account
Important information about short term loansWhile short term loans can be beneficial for many people, they aren’t always the best option for everyone. Follow the link for more information on payday loan alternatives.
Have more questions about Alabama short term loans?
How long does it take to complete a typical short term loan application?
If you have access to all the required information, you can complete most applications in 10 to 15 minutes.
What are the typical loan terms of a cash advance in Alabama?
The loan terms of short term loans in this state can vary between 10 and 31 days.
What happens if I can’t repay the loan even after a rollover?
The lender can give you an option to go on an extended payment plan that consists of four equal monthly installments. This is not the same as an Alabama installment loan.