Payday loans in Alabama: what the law allows

Yes. Alabama allows payday loans up to $500, with a fee limit of 17.5% of the cash advanced. We haven't confirmed Alabama's car title loan rules yet.

Alabama

Payday loans

Allowed

Car title loans

Not confirmed yet

“The law limits the maximum loan amount that any one borrower may have with all Deferred Presentment providers to $500.”

Checked 2026-09-15. Laws change; confirm with the regulator before you borrow.

Before you borrow

A payment plan, a paycheck advance or a credit union payday alternative loan usually costs less than a payday or title loan.

Already behind on a payday loan?

See every way out of the debt you have, including options nobody sells.

The fee, the APR and what renewing the loan adds up to.

Credit union PAL limits, payment and cost next to a payday loan.

Every way to cover a shortfall, priced in dollars, cheapest first.

The warning signs of a fake loan offer, checked one by one.

Are payday loans legal in Alabama?

Yes. Alabama allows payday loans up to $500, with a fee limit of 17.5% of the cash advanced.

Are car title loans legal in Alabama?

We haven't confirmed Alabama's car title loan rules yet.

How do I check a lender's license in Alabama?

Look the lender up with Alabama State Banking Department, Bureau of Loans, which licenses lenders in Alabama.

Do these rules protect service members?

Yes. The Military Lending Act limits payday and car title loans for covered service members to 36%, in every state.

Information, not legal advice. Laws change; confirm with the state regulator.