Alabama Payday Loans and Installment Loans
Payday loans and installment loans are available in the state of Alabama. For finding fast cash loans in Alabama, you can use our smart search facility which will match your details and requirements with a large network of lenders and brokers who offer loans in all the cities in the Alabama. Please read below for more information regarding APR (annual percentage rate), maximum loan amount, maximum loan period, maximum rollovers, permitted fees and charges etc in Alabama.
The maximum loan amount permitted in the state of Alabama is $500. According to Alabama law, a borrower cannot take more than $500 payday loan depending upon their income level, employment status and other factors. The maximum loan amount in case of installment loans is $1000.
A payday loan is available for not less than 10 days to not more than 31 days as per Alabama law. An installment loan is typically available for a longer period of upto 6 months which can be paid via Bi-weekly or monthly payments.
APR And Fees
As per Alabama law, a Deferred Presentment provider (lenders or brokers) can charge a maximum 17.5% of the loan amount. In addition of this, lenders might also charge a $10 origination fee. In case of a default or non-payment, an additional 3% interest can be levied the after initial loan period. The APR is the annual percentage rate which is the cost of loan expressed as a yearly rate. The APR varies according to period of loan for example, APR for 14 days payday loan will be 456.25% whereas for 31 days payday loan, APR will be 206.05%. THE APR will increase in case of a shorter loan period and APR will decrease when loan period is longer. The Apr is calculated as below:
APR = Finance Charge(%) x 365 / Period of Loan (Number Of Days)
So APR of a payday loan with 17.5% Finance charge for 14 days would be calculated as:
Please read below illustrations for fees and total payment as per different loan amounts.
PLEASE NOTE THAT FOLLOWING EXAMPLE IS FOR REPRESENTATIVE PURPOSE ONLY. THERE MIGHT BE A DIFFERENCE IN ACTUAL APR AND INTEREST CHARGES DEPENDING UPON TERMS AND CONDITIONS, LOAN AMOUNT AND VARIOUS OTHER FACTORS.