Loan Rates and Fees in Alabama

A licensed lender can charge up to $17.50 per $100 borrowed - labeled "finance charge" on your agreement - on loans up to $500, with terms of 10 to 31 days. Your total outstanding payday balance across all lenders can't exceed $500, tracked through a statewide database.

On a $300 loan due in 14 days, the maximum fee is $52.50, making your total repayment $352.50. Your agreement will show roughly 456% APR - that's the 14-day fee scaled to a full year, required by federal disclosure rules.

• One rollover is allowed - the same fee (up to 17.5%) is charged again on the renewed balance.
• The returned payment fee - labeled "NSF fee" on your agreement - is a one-time charge capped at $30, covering both bounced checks and failed automatic withdrawals.
• The statewide database fee is paid by the lender and may not be charged to you as a separate line item.

If an offer exceeds these limits, verify with the Alabama State Banking Department.

Licensed small loan lenders use a declining-balance interest model - you pay interest only on what you still owe, and the rate steps down as your balance crosses each threshold.

Lenders may also charge an account maintenance fee of up to $3 per month if your scheduled payment is $30 or more. The maximum loan amount under the Small Loan Act is $1,500.

On a $1,000 loan at the maximum rates for 12 months, you'd repay approximately $1,150 total - roughly $150 in interest plus $1,000 in principal, before any maintenance fee.

• Refinancing restarts interest on the new amount - compare your remaining balance to the new loan's total of payments before you agree.
• The same $30 returned payment fee cap applies - see payday loan costs above.
• Late fees: verify the exact amount and grace period with your lender before you sign.
• You can prepay at any time with no penalty - interest stops accruing on the date you pay off; see the Alabama installment loans page for repayment details.

If an offer exceeds these limits, verify with the Alabama State Banking Department.

• Returned payment fee: shouldn't exceed $30 (one-time) on either product.
• Total of payments: the single most important number - this is everything you'll pay back over the full term, including all fees and interest.
• Military borrowers: federal protections under the Military Lending Act may apply - verify with your lender.