Find Payday Loans in Alabama
In Alabama, safe harbor legislation exempts cash advance lenders from usury and/or small loan laws. Single payment loans based on checks that are written on borrowers' bank accounts at interest rates in the triple-digit range are allowed. There is no limit on the number of outstanding loans that a payday advance borrower can have; however, the total must not exceed $500. After paying off 2 back-to-back loans, a customer need only wait until the next business day to apply for another payday loan.
A borrower may apply for up to $500 in payday advance funds.
The loan term that is available to borrowers is anywhere from 10 to 31 days.
Alabama law permits one rollover or extension.
A cash advance lender may not charge a finance fee that is more than 17.5 percent of the amount issued. A borrower who obtains a $100 loan for a 14-day period will pay a finance charge of $17.50. The maximum monthly finance rate after default is 3%.
The annual percentage rate (APR) on a 14-day loan of $100 is 456.25%.