Loan Options in Alaska

Payday loans and installment loans are both allowed

Alaska allows both payday loans and installment loans. Payday lending falls under the Alaska Small Loans Act (AS 06.50). Before a lender can make advances to Alaska residents, it must get a license from the Division of Banking & Securities. The law also sets limits on loan amounts, fees, and how many outstanding loans you can have at one time. Installment lenders also need a license and must follow Alaska’s disclosure rules.

Focus on the real cost and the right structure

Since Alaska permits both types of loans, what matters most is how the loan is structured for your needs and what you’ll pay back in total. For a side-by-side look at fee caps and APR ranges, go to Alaska Rates & Fees. You can also read more on the payday loans or installment loans pages.

• Licensing requirement. Every payday and small-loan lender that operates in Alaska must be licensed by the Division of Banking & Securities. That includes online lenders that serve Alaska residents. If a lender is unlicensed, it has no legal authority to collect. You can search active licenses on the DBS website.
• Loan-amount and fee caps. AS 06.50 caps payday advance amounts and origination fees. This can limit the cost of borrowing, though it does not make borrowing cheap. For the current figures, see Rates & Fees.
• Limit on simultaneous loans. Alaska limits how many payday advances you can have open at the same time. This is meant to help reduce the risk of debt stacking.
• Complaint process. If a licensed lender breaks state rules, you can report it to the state through the Division of Banking & Securities complaint page. DBS can investigate and take enforcement action.

Before you share personal or financial information with a lender, review the LendUp scams & safety checklist. Then confirm the lender’s license using the DBS search linked above.