Permitted Regulated Verified 2026-09-07 · ver. 0.2.3 How we verify these rules

Payday Loans in Alabama

Alabama permits licensed deferred-presentment transactions up to $500 for 10–31 days. The fee may not exceed 17.5% of the amount advanced, and renewal is tightly limited.

Alabama legal category: Deferred Presentment Transaction · Alabama Deferred Presentment Services Act, Code of Alabama Title 5, Chapter 18A

Alabama payday loans at a glance

Legal status
Permitted Regulated
Legal category
Deferred Presentment Transaction
Maximum amount in this regime
$500
Term
10–31 days
Regulator
Alabama State Banking Department — Bureau of Loans
Verified
2026-09-07

Choose a loan type by amount

PLS Cash Advance currently presents request amounts from $200 to $5,000. The ranges below are navigation guidance between our state loan guides — not statutory limits, eligibility rules, or a promise of approval.

$200–$500 Current guide

Payday Loans in Alabama

Editorial payday route within Alabama’s $500 statutory deferred-presentment ceiling.

$500–$5,000

Installment Loans in Alabama

Editorial installment route. The applicable Alabama statute and pricing model change within this range; $5,000 is the site selector boundary, not a statutory maximum.

See Installment Loans

Amount and term limits

The maximum amount advanced in a deferred presentment transaction is $500. Alabama also uses a statewide database to prevent a customer from having aggregate outstanding deferred-presentment amounts above $500.

A deferred presentment transaction runs from 10 through 31 days under the current Alabama framework.

Interest, fees and repayment

Alabama caps the deferred-presentment fee at 17.5% of the cash advanced. This is a transaction fee ceiling, not a statement of a typical APR or market price.

The provider may charge a maximum fee of 17.5% of the amount advanced.

The normal transaction is due at the end of the 10–31 day term. After the limited renewal sequence, the statutory framework provides for repayment through four equal monthly installments without an additional charge in the circumstances specified by law.

Rollovers, refinancing and early payment

Rollover allowed?
Yes
A licensee may renew or extend the transaction no more than one additional time; Alabama does not authorize an unlimited rollover chain.
Prepayment penalty allowed?
Not reduced to a yes/no rule
No separate universal prepayment-penalty rule is encoded for this short-term product; payoff and extension rights should be read with the governing agreement and Chapter 18A.

Alabama borrower protections

  • The amount advanced may not exceed $500, with statewide-database controls on aggregate outstanding deferred-presentment borrowing.
  • The contractual term is limited to 10–31 days.
  • The transaction fee may not exceed 17.5% of the amount advanced.
  • A licensee may offer no more than one additional renewal; the law does not permit unlimited rollovers.
  • The Alabama State Banking Department licenses deferred-presentment providers.

Alabama loan cost calculator

Why there is no single statutory calculator: The statutory cost is expressed as a transaction-fee ceiling and the product also has borrower-level database and renewal rules. A new state-specific calculator is not justified for this release.

How to verify a lender in Alabama

Regulator: Alabama State Banking Department — Bureau of Loans.

Deferred Presentment Services license

Verify a lender license

Official sources

  1. Code of Alabama §5-18A-12 — Deferred presentment fees and amount · primary
  2. Alabama Administrative Code Chapter 155-2-4 — Deferred Presentment Services · primary
  3. Alabama State Banking Department — Bureau of Loans licensing · primary

Last regulatory verification: 2026-09-07. Laws can change; verify current terms and lender status before borrowing. Read our research methodology.