Online Payday Loans in Alabama
When an unexpected expense hits in Alabama, SlickCashLoan gives you a fast path forward. Alabama caps payday loans at $500 with fees of up to 17.5% of the amount advanced. Our online application takes minutes to complete from Birmingham or anywhere across the state.
Why Online Payday Loans Work for Alabama Borrowers
Online Payday loans are high-cost, short term, small-dollar loans that are made over the internet to fill gaps in a consumer’s cash flow until the borrower receives their next paycheck. Many Alabama consumers seek out these types of loans because they are fast. Car repairs, medical bills, overdue utilities, or emergency house needs are examples of events that occur unexpectedly and require money now to take care of them. These situations also generally do not allow time for a typical bank review.
The online application process used by some payday lenders may be designed to be easy and quick, and consumers can sometimes complete an application online by entering identifying information, verifying employment, and providing checking account information for possible electronic deposit if approved.
Alabama Payday Loan Costs and State Rules
While a payday loan is not like a low-interest rate personal loan, licensed payday lenders operating in Alabama are allowed to charge up to 17.5 percent of the amount financed as a finance charge. Additionally, the annual percentage rate (APR), which takes into consideration the monthly interest rate plus any fees charged on the loan, varies depending upon the length of the loan period.
Based on its own APR example, the state of Alabama calculates that a 14-day loan bearing a 17.5 percent finance charge would result in approximately 456 percent APR. If this was paid back within 10 days with the same finance charge, it would equate to a higher APR than a 14-day loan. As previously stated, both of these rates far exceed those normally associated with credit card financing or standard personal loans.
Even though payday loans have very high interest rates compared to most other forms of lending, they can still serve some uses for consumers who are careful. In order to protect consumers in Alabama, licensed payday lenders must comply with state laws requiring them to consult a centralized database and adhere to the $500 aggregate limit on the total amount that can be borrowed from multiple payday loans.
All licensed payday lenders must disclose to their consumers certain basic information prior to extending them any form of credit including but limited to the fees, repayment terms, and estimated costs involved with repaying such loan(s).
Get Started with Your Alabama Payday Loan Today
SlickCashLoan may help connect Alabama residents with payday loans through an online application, subject to lender licensing and state law. We believe our system provides Alabama consumers with an efficient way to get loan quotes and compare different loan offers.
Prior to completing an application, please determine how much you actually need to borrow and when you expect your next payroll date. Also, consider whether there is enough room in your budget for repayment of a loan. As mentioned above, payday loans are intended for immediate short term financial emergencies and should not be considered as an alternative for paying your regular expenses or for dealing with long-term debt.
Alabama Payday Loan Laws & Regulations
Payday lending in Alabama is governed by the Deferred Presentment Services Act (Alabama Code § 5-18a) and administered by the Alabama State Banking Department. All payday lenders must obtain a valid license from the department before extending any loans. Prior to disbursing funds, all loan transactions must be entered into the statewide verification database to ensure that no borrower has more than $500 outstanding across all lenders at one time.
| Regulation | Alabama Rule |
|---|---|
| Governing Law | Alabama Code §5-18A (Deferred Presentment Services Act) |
| Regulator | Alabama State Banking Department |
| Maximum Loan Amount | $500 aggregate across all lenders |
| Loan Term | 10 to 31 days |
| Maximum Finance Charge | 17.5% of the amount advanced |
| Example APR - 14-day loan | 456.25% |
| Example APR - 10-day loan | 638.75% |
| Rollovers Permitted | 1 rollover allowed |
| Cooling-Off Period | 1 business day after 2 consecutive loans |
| Extended Repayment Plan | Available upon request after one rollover, at no additional cost |
| NSF Fee Cap | $30 |
| Criminal Collection Tactics | Not permitted - defaults are a civil matter only |
Borrowers are also given some specific rights under Alabama's statutes that are worth noting prior to signing any agreement. Borrowers who do not repay their loans by the due date may be eligible to roll over the loan one time. Once a borrower has used the rollover option, they can request a no-cost extended repayment plan. The extended repayment plan allows the borrower to repay the outstanding principal balance of the loan in installment payments rather than paying it back with one payment.