- Payday loans are legal in Alabama under the Alabama Deferred Presentment Services Act.
- The typical APR on a $400 payday loan in Alabama was 456% (CRL, June 2023, from state regulator data).
- Borrowing $300 at the maximum fee costs $52.50 (17.5% fee).
Payday loan rules in Alabama
| Rule | Alabama |
|---|---|
| Maximum loan | $500 outstanding in total (checked through a statewide database) |
| Maximum fee | 17.5% of the amount advanced |
| Loan term | 10 to 31 days |
| Renewals | One renewal; after that you can ask to repay in four monthly installments at no extra cost |
Rules checked 2026-10-04. Laws change, so confirm current limits with the Alabama State Banking Department.
What a payday loan costs in Alabama
The Center for Responsible Lending found the typical APR on a $400 single-payment payday loan in Alabama was 456%, based on data from the state regulator (June 2023). Under the state’s fee limits, borrowing $300 costs $52.50 (17.5% fee). Use our cost calculator to turn any offer into an APR.
Most payday loans are due in one payment on your next payday. If repaying leaves you short again, ask about an extended payment plan and avoid renewals.
Need $100–$1,000 before payday?
- One free request, many lenders
- Bad credit and benefit income considered by many lenders
- See the APR and total cost before you sign
PaydayEase is not a lender. Requests go to lenders in our network; approval, rates and terms are set by the lender. Rates & fees
How to check a lender in Alabama
- Make sure the lender is licensed by the Alabama State Banking Department. Many lenders can also be looked up on NMLS Consumer Access.
- Get the APR and finance charge in writing before you sign. Federal law requires them.
- Be careful with online lenders that say Alabama law does not apply to them because they are tribal or offshore.
- File complaints with the state regulator and the CFPB.
Cheaper options in Alabama
- Credit union payday alternative loans (PALs): $200–$2,000 at no more than 28% APR. Search for a federal credit union in Alabama that offers them. See how PALs work.
- Your bank’s small-dollar loan, if it offers one. See bank small-dollar loans.
- Cash advance apps for $20–$500 based on your direct deposits. See apps compared.
- 211: call or text 211 for local help with rent, utilities and food.
Alabama cities
Local guides for 389 Alabama cities and towns, with credit unions, nearby towns and the rules that apply.
- Payday loans in Huntsville
- Payday loans in Mobile
- Payday loans in Birmingham
- Payday loans in Montgomery
- Payday loans in Tuscaloosa
- Payday loans in Hoover
- Payday loans in Auburn
- Payday loans in Dothan
- Payday loans in Madison
- Payday loans in Decatur
- Payday loans in Florence
- Payday loans in Prattville
- Payday loans in Phenix
- Payday loans in Vestavia Hills
- Payday loans in Opelika
All 389 Alabama cities, A to Z
Need cash before payday?Send one free request to our lender network. We are not a lender; offers and rates come from lenders.
Request a loanFrequently asked questions
Are payday loans legal in Alabama?
Yes. Payday lending is legal in Alabama under the Alabama Deferred Presentment Services Act and is regulated by the Alabama State Banking Department.
What is the typical payday loan APR in Alabama?
The Center for Responsible Lending reported a typical APR of 456% on a $400 payday loan in Alabama, using state regulator data (June 2023).
Where can I complain about a payday lender in Alabama?
Contact the Alabama State Banking Department and file a complaint with the Consumer Financial Protection Bureau.