Loans in Alabama: Payday & Installment Loan Options

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Yes, you can get a loan in Alabama, online or in a store. Licensed lenders make payday loans of up to $500 for 10 to 31 days, at a fee of no more than 17.5% of the advance, and small installment loans under $1,500 at capped monthly rates.

Check Your Options

Payday loan	Up to $500 for 10 to 31 days; fee up to 17.5% of the advance
Small loan	Under $1,500: 3% a month on the first $200, 2% on the rest
Example	$1,000 over 12 months: $99.47 to $115.00 a month at the caps
$2,000 and up	No state rate cap: the rate is whatever you agree to
You need	ID, proof of income and a bank account (checking, for payday)

Compare the Costs Small Loan Pricing

What Alabama Lets Lenders Charge, From $300 to $2,000

Loan	Amount	Price limit
Payday	Up to $500	17.5% of the advance
Small loan	Under $1,500	3% / 2% a month + $3 fee
Mini-Code loan	$1,500 to $1,999	$15 / $10 per $100 a year
Larger loan	$2,000 or more	Rate you agree to
Title pawn	Secured by your title	25% of principal a month

Loan	You repay	Cost (APR)
$300 payday, 14 days	$352.50 once	$52.50 (~456%)
$500 small loan	6 × $94.04	$64 (~43%)
$1,000 small loan	12 × $99.47	$194 (~34%)
$1,000, alt. rates	12 × $115.00	$380 (~64%)
$1,800 Mini-Code	18 × $118.12	$326 (~22%)

Worked out from Alabama law, not offers from lenders in our network; a lender can charge less. Small-loan rows include the $3 monthly fee; the alternative row adds the 10% charge, $20 a month and a $40 closing fee.

These caps bind lenders licensed by the State Banking Department. Banks and credit unions lend under their own rules, so check the APR on any offer.

Under $1,500: Two Price Formulas for Small Loans

Standard rates

3% a month on the first $200 of the balance and 2% on the rest
Plus up to $3 a month when your payment is $30 or more
Up to 25 months to repay, in roughly equal installments

Alternative rates

A 10% acquisition charge plus $12 to $26 a month, by loan size
A closing fee of 4% of the loan or $50, whichever is less
3 to 18 months, with payments of at least $40

The alternative acquisition charge isn't refunded if you pay early. On either formula, late fees start after 10 days: up to $18 or 5% of the payment, whichever is greater.

Borrowing Online or With Bad Credit in Alabama

You can apply online. Alabama licenses online payday lenders the same way as stores, and a company making consumer loans to Alabama residents needs a license whether or not it has an office in the state.

Alabama law sets no minimum credit score. Each lender decides, and approval isn't guaranteed.
The Banking Department warns that many online lenders aren't licensed in Alabama, and that tribal-affiliated lenders may be outside its reach.

Need a few hundred dollars until payday? See Alabama payday loan rules.

Applying for an Alabama Loan, Step by Step

Match the loan to the amount: $500 or less until payday, or an installment loan repaid monthly.
Submit one request through LendUp. Lenders in our network review it, and any offer shows the APR, payments and total cost before you sign.
Before you sign, confirm the lender's Alabama license and that the charges fit the limits above.

Check Your Options

Confirming an Alabama Lender's License

Official lookup tool NMLS Consumer Access

Search by the company's legal name or NMLS ID. Alabama's payday, small loan and consumer credit licenses are moving onto NMLS from September 1 to December 31, 2026.
Match the license to your loan: Deferred Presentment for payday, Small Loan under $1,500, or Non-Mortgage Consumer Credit.
Not listed yet? Call the Banking Department at (334) 242-3452 or email Consumer.Lending@banking.alabama.gov; its own licensee search showed as temporarily unavailable on October 28, 2026.

Complaints go on the Department's form, mailed to its Consumer Lending unit. The Attorney General's consumer hotline is 1-800-392-5658.

Early payoff refunds. Pay a small loan off a month or more early and the lender must refund unearned charges, except the alternative-rate acquisition charge.
Unlicensed small loans are void. A company that needs a Small Loan license and lends without one can't collect any principal, interest or charges.

Common Questions

Can I get a loan online in Alabama?

Yes. LendUp takes requests online, and a lender that makes you an offer should hold the matching Alabama license: deferred presentment for a payday loan, small loan for loans under $1,500, or consumer credit. Licensed online lenders follow the same caps as stores.

Where can I get a loan in Alabama with bad credit?

From a licensed lender willing to approve you. Alabama sets no minimum credit score and each lender decides, but an Alabama-licensed payday or small-loan lender can't charge more than the state caps because your score is low.

What's the easiest loan to get approved for in Alabama?

There's no way to know ahead of time: each lender sets its own standards, and approval isn't guaranteed. Payday loans are limited by your total debt instead: a licensed lender can't make one that takes your open payday loans above $500.

What is the interest rate cap on loans in Alabama?

It depends on the size: 17.5% of the advance on payday loans, 3% and 2% a month (or the alternative charges) under $1,500, and $15 and $10 per $100 a year from $1,500 to $1,999. From $2,000, any agreed rate is allowed.

Are title loans legal in Alabama?

Yes, as title pawns from lenders licensed under the Pawnshop Act. The charge can reach 25% of the principal every month, far more than the other loans on this page.

Official Sources

General information, not legal advice. Facts on this page were checked against these sources on October 28, 2026.

LendUp isn't a lender. We pass your request to lenders in our network; offers aren't guaranteed, and we may earn compensation if a loan is funded.

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Loans in Alabama: Payday and Installment Options