- Payday loans in Montgomery follow Alabama law (Alabama Deferred Presentment Services Act).
- Borrowing $300 at the state maximum costs $52.50 (17.5% fee).
- 3 credit unions are headquartered in Montgomery; ask about small-dollar loans before borrowing.
Montgomery at a glance
| Montgomery | |
|---|---|
| Population (2024 Census estimate) | 195,818 |
| Change since 2020 | -2.1% (shrinking) |
| County | Montgomery County |
| Size rank among 389 Alabama places we cover | 4th |
| Share of Alabama’s population | 3.8% |
| Nearest larger city | Birmingham (about 87 miles) |
| Credit unions headquartered in town (NCUA) | 3, 1 federal |
| Credit unions headquartered in Montgomery County | 3 |
| Other towns within 25 miles | 11 (about 84,201 residents) |
| Typical payday APR statewide (CRL 2023) | 456% |
Whether you borrow at a storefront in Birmingham or online from Montgomery, the lender must hold a Alabama license from the Alabama State Banking Department and follow state limits.
Credit unions in Montgomery
These credit unions have their main office in Montgomery, according to NCUA call report data (June 2026):
- Fedmont Federal Credit Union (federal charter — may offer payday alternative loans (PALs))
- Alabama State Employees Credit Union (state charter)
- Max Credit Union (state charter)
Only federal credit unions can offer payday alternative loans (PALs), capped at 28% APR; state-chartered credit unions often have their own small-loan products. Membership rules apply, and only main offices are listed here; find branches near you with the NCUA Credit Union Locator. See how PALs work.
Payday loan rules that apply in Montgomery
| 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 |
What a $300 loan costs in Montgomery
The Center for Responsible Lending put the typical APR on a $400 payday loan in Alabama at 456% (June 2023). For $300 at the state maximum, expect $52.50 (17.5% fee). Check any offer with our payday loan calculator.
Other help in Montgomery County before you borrow
- Credit union payday alternative loans (PALs): $200–$2,000 at no more than 28% APR. Search for a federal credit union in Montgomery 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.
Towns near Montgomery
The nearest larger city is Birmingham, about 87 miles away. See all 389 Alabama cities.
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 Montgomery?
Yes. Payday loans are legal in Montgomery under Alabama state law, and lenders must be licensed by the Alabama State Banking Department.
How much does a payday loan cost in Montgomery?
At Alabama’s maximum fee, borrowing $300 costs $52.50 (17.5% fee). The typical statewide APR was 456% in 2023.
Are there credit unions in Montgomery?
Yes. NCUA data lists 3 credit unions with a main office in Montgomery, including Fedmont Federal Credit Union and Alabama State Employees Credit Union. Federal credit unions can offer payday alternative loans capped at 28% APR.
Sources
- U.S. Census Bureau — City and town population totals, Vintage 2024
- U.S. Census Bureau — 2024 Gazetteer files (place locations)
- NCUA — Credit union call report data, June 2026 (FOICU)
- NCLC — Consumer Credit Regulation: Alabama
- Lexology — Alabama establishes payday loan database
- Center for Responsible Lending — Red Alert Rates: APRs on $400 single-payment payday loans (June 2023)
- CDFI Fund — NCUA payday alternative loans summary