Loans By State

Best Loans in Alabama, Payday, Auto Title Laws 2020

EPF Last Update: June 7, 2020

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Alabama’s Consumer Credit Act – enforced by the State Banking Department – is designed to control the cost of installment loans and protect residents of Alabama. The act limits the annual interest rate lenders can charge. It works like this: $15 per $100 on the first $750 you borrow and $10 per $100 for amounts exceeding $750 but less than $2,000. If you happen to default on the loan, you’re allowed a 10-day grace period to come up with the funds. After 10 days, the lender can impose a late payment fee of $18 or 5% of the amount in default. However, the late payment fee cannot exceed $100.

For loans of $300,000 or more, the maximum repayment term is 36 months and 15 days. For loans less than $300,000, the maximum repayment term is 25 months and 15 days.

For smaller loans, lenders must abide by Alabama’s Small Loan Act. The legislation limits interest charges to 3% per month for loans less than $200 and 2% per month for loans in between $200 to $1,000. Similarly, late payment fees cannot exceed $18 or 5% of the amount in default, but the maximum repayment term is 12 months.

When breaking down both documents, we found some overlap between the two statues. It isn’t entirely clear which act loans in the $751 to $1,000 range must abide by. Thus, before taking out an installment loan, make sure you ask the lender which regulation the loan falls under.

Best Bad Credit Loans in Alabama 2020

Amount

$500 – $10,000

Min Credit Score

0

APR

5.99% – 35.99%

Approval

< 1 Day

Terms

3 – 36 Months

Licensed in Alabama

Not a direct lender

Amount

$100 - $2,500

Min Credit Score

0

APR

Vary by State

Approval

< 1 Day

Terms

1 - 36 Months

Licensed in Alabama

Yes

Amount

$1,000 – $5,000

Min Credit Score

0

APR

Vary By State

Approval

< 1 Day

Terms

9 – 36 Months

Licensed in Alabama

Yes

Amount

$100 – $1,000

Min Credit Score

0

APR

Vary By State

Approval

< 1 Day

Terms

7 – 30 Days

Licensed in Alabama

Yes

Amount

$1,000 – $10,000

Min Credit Score

0

APR

5.99% – 35.99%

Approval

< 1 Day

Terms

2 – 5 Years

Licensed in Alabama

Not a direct lender

Amount

$1,000 – $50,000

Min Credit Score

500

APR

3.99% – 35.99%

Approval

< 1 Day

Terms

1 – 5 Years

Licensed in Alabama

Yes

Amount

$1,000 – $35,000

Min Credit Score

0

APR

5.99% – 35.99%

Approval

< 1 Day

Terms

2 – 5 Years

Licensed in Alabama

Yes

Amount

$1,000 – $100,000

Min Credit Score

500

APR

5.34% – 35.99%

Approval

< 1 Day

Terms

90 Days – 72 Months

Licensed in Alabama

Yes

Amount

$1,000 - $100,000

Min Credit Score

0

APR

4.99 - 35.99%

Approval

< 1 Day

Terms

12 - 120 months

Licensed in Alabama

Yes

Amount

$1,000 – $35,000

Min Credit Score

580

APR

5.99% – 35.99%

Approval

< 1 Day

Terms

90 Days – 72 Months

Licensed in Alabama

Not a direct lender

If you have problem with getting a loan, please read our complete guide on bad credit loans.

Best Personal Loans for Good Credit in Alabama 2020

Amount

$1,000 - $100,000

Min Credit Score

0

APR

4.99 - 35.99%

Approval

1 Day

Terms

12 - 120 months

Licensed in Alabama

Yes

Amount

$2,000 - $40,000

Min Credit Score

640

APR

7.95% - 35.99%

Approval

1 - 3 Days

Terms

36 - 60 months

Licensed in Alabama

Yes

Amount

$1,000 – $100,000

Min Credit Score

0

APR

4.99 - 35.99%

Approval

1 Day

Terms

12 - 120 months

Licensed in Alabama

Yes

Amount

$1,000 – $35,000

Min Credit Score

580

APR

5.99% – 35.99%

Approval

< 1 Day

Terms

90 Days – 72 Months

Licensed in Alabama

Yes

Amount

$1,000 – $50,000

Min Credit Score

500

APR

3.99% – 35.99%

Approval

< 1 Day

Terms

1 – 5 Years

Licensed in Alabama

Yes

Amount

$1,000 – $35,000

Min Credit Score

0

APR

5.99% – 35.99%

Approval

< 1 Day

Terms

2 – 5 Years

Licensed in Alabama

Yes

Amount

$1,000 – $50,000

Min Credit Score

600

APR

7.99% - 35.97%

Approval

< 1 Day

Terms

3 - 5 Years

Licensed in Alabama

Yes

Amount

$5,000 – $35,000

Min Credit Score

640

APR

5.99% – 24.99%

Approval

1 – 7 Days

Terms

2 - 5 Years

Licensed in Alabama

Yes

Amount

$2,500-$35,000

Min Credit Score

660

APR

6.99-24.99%

Approval

1 Day

Terms

24 - 84 Months

Licensed in Alabama

Yes

Amount

$7,500 - $40,000

Min Credit Score

680

APR

6 - 15%

Approval

1 - 7 Days

Terms

36 - 84 months

Licensed in Alabama

Yes

To find the best loan in Alabama – regardless of your credit score – check out our list of recommended lenders.

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Payday Loan Laws in Alabama 2020

Maximum Loan Amount: $500

Minimum Loan Term: 10 days

Maximum Loan Term: 31 days

Maximum Fee: 17.5% for every $100 borrowed

Maximum APR: 456.25%

Rollovers: 1 rollover per loan

Loan Limit: You must wait one business day after repaying two consecutive loans

Payday loans are legal in Alabama, however state law limits borrowing amounts to $500 and caps APRs at just over 456%. You’re allowed one rollover per loan, but after repaying your second consecutive payday loan, you must wait at least one business before submitting another application. As well, lenders are allowed to charge a $30 non-sufficient funds fee.

Payday lenders are licensed under Alabama’s Deferred Presentment Services Act, Section-5-18A-1. To remain in compliance, all lenders must have a current license and disclose all material information – including interest and fees – before a loan is officially processed. They’re also required to pay an annual license fee of $500 for each branch, office or place of business that the lender operates.

Payday Loan Laws in Alabama by Country

ElitePersonalFinance analysis of payday loan laws by countries in the State of Alabama.

We haven’t found a significant difference between the payday loan laws in Alabama. If you are with bad credit, here are the laws in Alabama by country.

City Amount Allowed APR Allowed Status
Birmingham $500 456% Legal
Montgomery $500 456% Legal
Huntsville $500 456% Legal
Mobile $500 456% Legal
Tuscaloosa $500 456% Legal
Hoover $500 456% Legal
Dothan $500 456% Legal
Auburn $500 456% Legal
Decatur $500 456% Legal
Madison $500 456% Legal
Florence $500 456% Legal
Phenix City $500 456% Legal
Prattville $500 456% Legal
Gadsden $500 456% Legal
Vestavia Hills $500 456% Legal
Alabaster $500 456% Legal
Opelika $500 456% Legal
Enterprise $500 456% Legal
Bessemer $500 456% Legal
Homewood $500 456% Legal
Northport $500 456% Legal
Daphne $500 456% Legal
Athens $500 456% Legal
Pelham $500 456% Legal
Prichard $500 456% Legal
Anniston $500 456% Legal
Trussville $500 456% Legal
Albertville $500 456% Legal
Oxford $500 456% Legal
Mountain Brook $500 456% Legal
Fairhope $500 456% Legal
Troy $500 456% Legal
Selma $500 456% Legal
Helena $500 456% Legal
Foley $500 456% Legal
Tillmans Corner $500 456% Legal
Center Point $500 456% Legal
Talladega $500 456% Legal
Hueytown $500 456% Legal
Cullman $500 456% Legal
Millbrook $500 456% Legal
Alexander City $500 456% Legal
Scottsboro $500 456% Legal
Ozark $500 456% Legal
Hartselle $500 456% Legal
Saraland $500 456% Legal
Fort Payne $500 456% Legal
Gardendale $500 456% Legal
Muscle Shoals $500 456% Legal
Jasper $500 456% Legal
Pell City $500 456% Legal
Calera $500 456% Legal
Moody $500 456% Legal
Jacksonville $500 456% Legal
Chelsea $500 456% Legal
Irondale $500 456% Legal
Sylacauga $500 456% Legal
Leeds $500 456% Legal
Eufaula $500 456% Legal
Gulf Shores $500 456% Legal
Fairfield $500 456% Legal
Saks $500 456% Legal
Pleasant Grove $500 456% Legal
Atmore $500 456% Legal
Russellville $500 456% Legal
Clay $500 456% Legal
Rainbow City $500 456% Legal
Boaz $500 456% Legal
Meadowbrook $500 456% Legal
Valley $500 456% Legal
Forestdale $500 456% Legal
Fultondale $500 456% Legal
Bay Minette $500 456% Legal
Sheffield $500 456% Legal
Pike Road $500 456% Legal
Andalusia $500 456% Legal
Southside $500 456% Legal
Clanton $500 456% Legal
Tuskegee $500 456% Legal
Tuscumbia $500 456% Legal
Guntersville $500 456% Legal
Spanish Fort $500 456% Legal
Arab $500 456% Legal
Wetumpka $500 456% Legal
Greenville $500 456% Legal
Pinson $500 456% Legal
Brook Highland $500 456% Legal
Demopolis $500 456% Legal
Moores Mill $500 456% Legal
Hamilton $500 456% Legal
Montevallo $500 456% Legal
Meridianville $500 456% Legal
Lincoln $500 456% Legal
Oneonta $500 456% Legal
Robertsdale $500 456% Legal
Opp $500 456% Legal
Theodore $500 456% Legal
Lanett $500 456% Legal
Tarrant $500 456% Legal
Satsuma $500 456% Legal
Monroeville $500 456% Legal
Grayson Valley $500 456% Legal
Roanoke $500 456% Legal
Orange Beach $500 456% Legal
Attalla $500 456% Legal
Chickasaw $500 456% Legal
Harvest $500 456% Legal
Highland Lakes $500 456% Legal
Smiths Station $500 456% Legal
Brewton $500 456% Legal
Midfield $500 456% Legal
Fort Rucker $500 456% Legal
Glencoe $500 456% Legal
Daleville $500 456% Legal
Rainsville $500 456% Legal
Tallassee $500 456% Legal
Childersburg $500 456% Legal
Semmes $500 456% Legal
Jackson $500 456% Legal
Brent $500 456% Legal
Margaret $500 456% Legal
Headland $500 456% Legal
Piedmont $500 456% Legal
Pine Level $500 456% Legal
Winfield $500 456% Legal
Columbiana $500 456% Legal
Fayette $500 456% Legal
Geneva $500 456% Legal
Adamsville $500 456% Legal
Hokes Bluff $500 456% Legal
Redland $500 456% Legal
Argo $500 456% Legal
Springville $500 456% Legal
Holt $500 456% Legal
Holtville $500 456% Legal
Grand Bay $500 456% Legal
Mount Olive CDP $500 456% Legal
Alexandria $500 456% Legal
Thomasville $500 456% Legal
Haleyville $500 456% Legal
Citronelle $500 456% Legal
Elba $500 456% Legal
Valley Grande $500 456% Legal
Odenville $500 456% Legal
Evergreen $500 456% Legal
Union Springs $500 456% Legal
Centre $500 456% Legal
Cottondale $500 456% Legal
Hazel Green $500 456% Legal
Heflin $500 456% Legal
Ladonia $500 456% Legal
Livingston $500 456% Legal
Marion $500 456% Legal
West End-Cobb Town $500 456% Legal
Hanceville $500 456% Legal
Priceville $500 456% Legal
Moulton $500 456% Legal
Warrior $500 456% Legal
Emerald Mountain $500 456% Legal
Underwood-Petersville $500 456% Legal
Dadeville $500 456% Legal
Red Bay $500 456% Legal
York $500 456% Legal
Weaver $500 456% Legal
Kimberly $500 456% Legal
Lake View $500 456% Legal

What if I Don’t Qualify for a Loan?

If you’re struggling to obtain a loan, there are other ways to make money and bridge the gap. Today’s digital economy offers plenty of ways to earn extra cash and keep your finances above water. Some options include: working as an Uber driver, filling out paid surveys or freelancing online. Whatever your preference, you can find helpful tips in our money making guide.

Car Title Loans in Alabama 2020

Car title loans are also legal in Alabama.

But before choosing a lender, make sure the company is licensed in the state. Like payday lenders, car title lenders are also required to pay an annual fee to maintain their license.

In Alabama, there are no limits on the amount you can borrow and APRs can reach as high as 300%. But because car title lenders are subject to Alabama’s Pawn Shop Act, loans have a maximum 30-day repayment period and interest rates are capped at 25% per month.

What separates Alabama from other U.S. states is its repossession laws. If you default on the loan, a 30-day rollover begins. Here, you’re charged additional fees and interest, which is added on to your original loan. If you’re still in default after the 30-day extension, the lender can repossess your car. But after the repossession and sale, Alabama state law allows lenders to keep any surplus profits from the transaction. For example, if you borrow $2,000 and your car is repossessed and sold for $3,500, the lender is legally allowed to keep the entire $3,500. Other U.S. states require the lender to return the $1,500 excess.

Alternative Payday Loans in Alabama

If you don’t qualify for a personal loan, alternative payday loans are the next best thing. While their APRs are much higher than personal loans – ranging from 35.99% to roughly 200% – they’re a much cheaper option than traditional payday loans.

OppLoans is a prime example. The company’s APRs range from 99% to 199%, but the lender is licensed in Alabama and complies with all applicable laws. Its license was granted by the State Banking Department .

For more information on how alternative lenders can help when others can’t, see our detailed guide.

Best Auto Loans for Bad Credit in Alabama 2020

Amount

$1,000 - $100,000

Min Credit Score

0

APR

From 1.99%

Licensed in Alabama

Yes

Amount

$1,000 - $100,000

Min Credit Score

0

APR

From 1.99%

Licensed in Alabama

Yes

Amount

Up to $100,000

Min Credit Score

0

APR

Vary

Licensed in Alabama

Yes

Amount

Up to $100,000

Min Credit Score

0

APR

Vary

Licensed in Alabama

Yes

Amount

Up to $100,000

Min Credit Score

0

APR

Vary

Licensed in Alabama

Yes

Amount

$8,000 - $100,000

Min Credit Score

500

APR

2.74% - 27%

Licensed in Alabama

Yes

Amount

$1,000 - $100,000

Min Credit Score

500

APR

From 3.09%

Licensed in Alabama

Yes

Amount

$250 - $500,000

Min Credit Score

640

APR

2.99% - 21.99%

Licensed in Alabama

Yes

Amount

$1,500 - $20,000

Min Credit Score

0

APR

18.00% - 35.99%

Licensed in Alabama

Yes

Amount

$1,000 - $45,000

Min Credit Score

0

APR

From 0.99%

Licensed in Alabama

Yes

Amount

$1,000 - $35,000

Min Credit Score

0

APR

From 1.99%

Licensed in Alabama

Yes

Amount

$7,500 - $50,000

Min Credit Score

500

APR

From 3.39%

Licensed in Alabama

Yes

Amount

$5,000 – $55,000

Min Credit Score

510

APR

3.99% - 24.99%

Licensed in Alabama

Yes

Amount

$1,000 - $100,000

Min Credit Score

0

APR

3.90% - 27.90%

Licensed in Alabama

Yes

Best Auto Loans for Good Credit in Alabama 2020

Amount

$1,000 - $100,000

Min Credit Score

0

APR

From 1.99%

Licensed in Alabama

Yes

Amount

$1,000 - $100,000

Min Credit Score

0

APR

From 1.99%

Licensed in Alabama

Yes

Amount

$1,000 - $100,000

Min Credit Score

500

APR

From 3.09%

Licensed in Alabama

Yes

Amount

$250 - $500,000

Min Credit Score

640

APR

2.99% - 21.99%

Licensed in Alabama

Yes

Amount

$5,000-$100,000

Min Credit Score

660

APR

4.99% to 9.19%

Licensed in Alabama

Yes

Amount

$7,500 - $50,000

Min Credit Score

500

APR

From 3.39%

Licensed in Alabama

Yes

Amount

$8,000 - $100,000

Min Credit Score

500

APR

2.74% - 27%

Licensed in Alabama

Yes

Amount

$1,000 - $100,000

Min Credit Score

0

APR

3.90% - 27.90%

Licensed in Alabama

Yes

Amount

$3,000 - $100,000

Min Credit Score

650

APR

From 3.12%

Licensed in Alabama

Yes

Amount

$5,000 - $100,000

Min Credit Score

640

APR

From 3.54%

Licensed in Alabama

Yes

Amount

$5,000 – $55,000

Min Credit Score

510

APR

3.99% - 24.99%

Licensed in Alabama

Yes

Amount

$5,000 - $100,000

Min Credit Score

600

APR

3.54% - 10.24%

Licensed in Alabama

Yes

Amount

$1,500 - $20,000

Min Credit Score

0

APR

18.00% - 35.99%

Licensed in Alabama

Yes

Credit Unions in Alabama

Name: APR: Amount:
Redstone Federal Credit Union 9.92% – 18% $5,000
America’s First Federal Credit Union 10,80% – 18% Varies
MAX Credit Union 8.69% – 18% Varies

Redstone Federal Credit Union

Redstone Signature Loans allow you to borrow up to $5,000 and have fixed APRs that range from 10.25% to 18%. If you opt for a variable rate though, you can receive an APR as low as 9.92%. Loans are unsecured, so no collateral is required. As well, Redstone offers a secured loan option where you use your savings account, certificate of deposit (CD) or annuity as collateral for the loan. By putting up collateral, you’re able to decrease your APR and still earn dividends on your collateral balance. Keep in mind though, you need to be a member. To qualify, you must open a Redstone Savings Account and maintain a minimum balance for $5.

Redstone personal loans are available at 20 locations across Alabama and the lender has branches in Huntsville, Hartselle, Arab, Guntersville as well as many others.

America’s First Federal Credit Union

While loan amounts vary by borrower, America’s First offers extremely competitive APRs. Personal loans have fixed APRs that range from 10.80% to 18%. You can also secure your loan and lower your APR. Like Redstone, you need to be a member to qualify. However, you only need to live, work, worship or attend school in one of the following counties:

  • Bibb
  • Blount
  • Calhoun
  • Jefferson
  • Shelby
  • Clair
  • Walker
  • Mobile and Talladega (certain areas, not all)

America’s first also operates 19 branches across Alabama with locations in Bessemer, Cullman, Birmingham, Gardendale, as well as many others.

MAX Credit Union

Offering unsecured loans that start at $1,000, MAX has APRs that range from 8.69% to 18%. You can also opt for a secured loan with APRs as low as 2% above your CD dividend rate.

Currently, MAX has 23 branches and ATM locations across Alabama with services in Auburn, Montgomery, Millbrook, Opelika and others.

All Licensed Credit Unions in Alabama

Name City Size (Millions) Members
REDSTONE FEDERAL CREDIT UNION Huntsville $3,188.43 342640
AMERICA’S FIRST FEDERAL CREDIT UNION Birmingham $1,207.49 113174
MAX CREDIT UNION Montgomery $913.54 109921
ARMY AVIATION CENTER FEDERAL CREDIT UNION Daleville $1,033.24 105819
LISTERHILL EMPLOYEE’S CREDIT UNION Sheffield $540.80 69855
FAMILY SECURITY CREDIT UNION Decatur $462.04 67296
APCO EMPLOYEES CREDIT UNION Birmingham $2,129.51 63784
FAMILY SAVINGS FEDERAL CREDIT UNION Gadsden $281.04 58649
ALABAMA ONE CREDIT UNION Tuscaloosa $598.14 56986
ALABAMA TELCO CREDIT UNION Birmingham $573.11 54106
ALABAMA CREDIT UNION Tuscaloosa $479.31 46346
LEGACY COMMUNITY FEDERAL CREDIT UNION Birmingham $387.61 42358
COMMUNITY CREDIT UNION Gadsden $238.27 39765
MUTUAL SAVINGS CREDIT UNION Birmingham $161.29 37143
NEW HORIZONS CREDIT UNION Mobile $187.86 32699
AOD FEDERAL CREDIT UNION Bynum $228.91 30372
GUARDIAN CREDIT UNION Montgomery $212.08 30310
ALABAMA STATE EMPLOYEES CREDIT UNION Montgomery $195.37 27221
ALABAMA CENTRAL CREDIT UNION Birmingham $124.56 24627
COOSA PINES FEDERAL CREDIT UNION Childersburg $210.14 20608
FORT MCCLELLAN CREDIT UNION Anniston $167.03 20572
ALABAMA TEACHERS CREDIT UNION Gadsden $213.84 19482
AUBURN UNIVERSITY FEDERAL CREDIT UNION Auburn $134.10 17496
TVA CREDIT UNION Muscle Shoals $268.40 17474
FIRST EDUCATORS CREDIT UNION Hoover $117.23 16451
FIVE STAR CREDIT UNION Dothan $183.53 16137
MOBILE EDUCATORS CREDIT UNION Mobile $69.40 13617
ECO CREDIT UNION Birmingham $113.56 13591
NORTH ALABAMA EDUCATORS CREDIT UNION Huntsville $79.37 11580
SECURE FIRST CREDIT UNION Birmingham $46.72 10667
HERITAGE SOUTH CREDIT UNION Sylacauga $78.46 9651
UNIVERSITY OF SOUTH ALABAMA FEDERAL CREDIT UNION Mobile $30.24 8987
FOUR SEASONS FEDERAL CREDIT UNION Opelika $45.17 8825
JEFFERSON COUNTY EMPLOYEES CREDIT UNION Birmingham $65.54 8484
TUSCALOOSA TEACHERS CREDIT UNION Tuscaloosa $106.63 8463
ACIPCO FEDERAL CREDIT UNION Birmingham $134.82 7360
RIVERDALE CREDIT UNION Selma $48.82 7345
RAILROAD FEDERAL CREDIT UNION Irondale $107.40 6809
VALLEY CREDIT UNION Tuscumbia $60.48 6426
NAHEOLA CREDIT UNION Pennington $72.71 6109
DCH CREDIT UNION Tuscaloosa $32.45 5998
IAM COMMUNITY FEDERAL CREDIT UNION Daleville $37.44 5945
TUSCALOOSA CREDIT UNION Tuscaloosa $53.50 5761
WIREGRASS FEDERAL CREDIT UNION Dothan $39.33 5751
TUSCALOOSA V A FEDERAL CREDIT UNION Tuscaloosa $45.60 5562
GULF COAST FEDERAL CREDIT UNION Mobile $29.15 5255
CRAIG CREDIT UNION Selma $10.85 5137
TRI-RIVERS FEDERAL CREDIT UNION (TRFCU) Montgomery $18.45 5058
LANDMARK CREDIT UNION Fairfield $55.20 4832
THE INFIRMARY FEDERAL CREDIT UNION Mobile $14.00 4764
WOLVERINE CREDIT UNION Decatur $22.80 4743
ROCKET CITY FEDERAL CREDIT UNION Huntsville $39.00 4540
FLORENCE FEDERAL CREDIT UNION Florence $45.88 4393
EAST ALABAMA COMMUNITY FEDERAL CREDIT UNION (EAMCFCU) Opelika $10.19 4198
CHATTAHOOCHEE FEDERAL CREDIT UNION Adamsville $14.07 3785
ALABAMA RURAL ELECTRIC FEDERAL CREDIT UNION Montgomery $27.34 3658
SOCIAL SECURITY CREDIT UNION Birmingham $27.02 3634
BALDWIN COUNTY FEDERAL CREDIT UNION Bay Minette $18.21 3451
CHAMPION COMMUNITY CREDIT UNION Courtland $50.33 3130
AZALEA CITY CREDIT UNION Mobile $19.07 2954
MILESTONE CREDIT UNION Fultondale $20.58 2928
CITY CREDIT UNION Tuscaloosa $14.42 2726
SHORELINE CREDIT UNION Mobile $7.82 2673
LAUDERDALE COUNTY TEACHERS CREDIT UNION Florence $29.41 2521
ENERGEN CREDIT UNION Birmingham $20.12 2463
ELECTRICAL WORKERS NO 558 FEDERAL CREDIT UNION Sheffield $20.21 2446
OPP-MICOLAS CREDIT UNION Opp $12.97 2263
TUSKEGEE FEDERAL CREDIT UNION Tuskegee $5.01 2240
PIKE TEACHERS CREDIT UNION Troy $7.90 2229
BREWTON MILL FEDERAL CREDIT UNION Brewton $17.93 2018
ALLIED CREDIT UNION Jackson $13.22 2002
MCINTOSH CHEMICAL FEDERAL CREDIT UNION Mcintosh $17.95 1999
ANG FEDERAL CREDIT UNION Birmingham $19.55 1931
COVINGTON SCHOOLS FEDERAL CREDIT UNION Andalusia $16.64 1856
FEDMONT FEDERAL CREDIT UNION Montgomery $11.59 1850
STEVENSON FEDERAL CREDIT UNION Stevenson $16.02 1834
HEALTH CREDIT UNION Birmingham $20.77 1831
CITY OF B’HAM GENERAL EMPLOYEES CREDIT UNION Birmingham $5.75 1797
RAILWAY EMPLOYEES CREDIT UNION Muscle Shoals $16.87 1752
EBSCO FEDERAL CREDIT UNION Birmingham $13.34 1750
MONTGOMERY VA FEDERAL CREDIT UNION Montgomery $7.74 1748
BIRMINGHAM POLICE CREDIT UNION Birmingham $5.40 1699
TUSCALOOSA COUNTY CREDIT UNION Tuscaloosa $8.62 1651
MEAD COATED BOARD FEDERAL CREDIT UNION Phenix City $44.86 1574
MOBILE POSTAL CREDIT UNION Mobile $10.81 1530
ALABAMA RIVER CREDIT UNION Monroeville $14.15 1488
FEDERAL EMPLOYEES CREDIT UNION Birmingham $12.35 1488
PHENIX PRIDE FEDERAL CREDIT UNION (PPFCU) Phenix City $5.03 1381
L&N EMPLOYEES CREDIT UNION Birmingham $10.73 1343
MONROE EDUCATION EMPLOYEES FEDERAL CREDIT UNION Monroeville $4.31 1302
PEOPLE’S FIRST FEDERAL CREDIT UNION Tarrant $5.74 1200
NORTHEAST ALABAMA POSTAL FEDERAL CREDIT UNION Anniston $14.41 1180
MOBILE GOVERNMENT EMP. CREDIT UNION Mobile $22.18 1152
ANDALUSIA MILLS EMPLOYEES CREDIT AS FEDERAL CREDIT UNION Andalusia $2.76 1082
SYCAMORE FEDERAL CREDIT UNION Sycamore $10.81 1078
O’NEAL CREDIT UNION Birmingham $2.66 1074
MARVEL CITY FEDERAL CREDIT UNION Bessemer $7.66 1026
SIXTH AVENUE BAPTIST FEDERAL CREDIT UNION Birmingham $4.38 989
COUNCILL FEDERAL CREDIT UNION Huntsville $2.95 944
N.E.A.R.M.C. EMPLOYEES FEDERAL CREDIT UNION Anniston $3.25 941
BLUE FLAME CREDIT UNION Mobile $7.89 907
PROGRESSIVE FEDERAL CREDIT UNION Mobile $6.19 894
DEGUSSA EMPLOYEES FEDERAL CREDIT UNION Theodore $5.69 871
NEW PILGRIM FEDERAL CREDIT UNION Birmingham $1.53 853
FIREMAN’S CREDIT UNION Birmingham $3.91 838
ALABAMA POSTAL CREDIT UNION Birmingham $6.80 811
BRASSIES CREDIT UNION Anniston $8.26 749
TVH FEDERAL CREDIT UNION Tuskegee $4.43 732
CLARKE EDUCATORS FEDERAL CREDIT UNION Auburn $2.72 729
DEMOPOLIS FEDERAL CREDIT UNION Demopolis $0.54 672
U S PIPE BESSEMER EMPLOYEES FEDERAL CREDIT UNION Bessemer $3.06 586
FOGCE FEDERAL CREDIT UNION Eutaw $1.19 570
NUCOR EMPLOYEES FEDERAL CREDIT UNION Fort Payne $3.48 450
DIXIE CRAFT EMPLOYEES CREDIT UNION Goodwater $2.72 441
CHEMCO CREDIT UNION Mcintosh $4.63 418
NORTH ALABAMA PAPERMAKERS FEDERAL CREDIT UNION Stevenson $1.90 411
S R I EMPLOYEES FEDERAL CREDIT UNION Birmingham $6.91 409
POSTAL EMPLOYEES CREDIT UNION Huntsville $3.23 384
NRS COMMUNITY DEVELOPMENT FEDERAL CREDIT UNION Birmingham $0.98 359
CHEM FAMILY CREDIT UNION Anniston $6.33 323
TUSCUMBIA FEDERAL CREDIT UNION Tuscumbia $1.44 287
ST. JOHNS AME BIRMINGHAM FEDERAL CREDIT UNION Birmingham $0.05 204
EMPLOYEES SAVINGS CREDIT UNION Montgomery $2.54 203
FIRST KINGDOM COMMUNITY FEDERAL CREDIT UNION Selma $0.15 109

Student Loans in Alabama

If you need a loan to help pay for college, Federal student loans – obtained through the U.S. Department of education – are the most common. Federal student loans are preferable to private student loans because they offer debt forgiveness, charge zero interest until you graduate and allow you to repay the proceeds as a percentage of your income. For more information, see our detailed guide.

At the state-level though, Alabama residents have access to grants and subsidy programs designed to make college more affordable.

Alabama Student Assistance Program (ASAP)

The ASAP Program provides anywhere from $300 to $5,000 in funding per year to students in need of financial aid. To be eligible, you must be a resident of Alabama and attend one of the 80 partner institutions. As well, you need to submit your application by October 1st of each year. You can do so through the Federal Student Aid website or through the financial aid office of your prospective school.

Alabama Student Grant Program

Unlike the ASAP, the Alabama Student Grant Program is determined by academic merit and not financial need. The amount you qualify for varies, but funding never exceeds $1,200 per year. Only select institutions participate in the program, but here is the list of eligible colleges and universities:

  • Amridge University
  • Birmingham Southern College
  • Faulkner University
  • Huntingdon College
  • Judson College
  • Miles College
  • Oakwood University
  • Samford University
  • Spring Hill College
  • South University – Montgomery
  • Stillman College
  • S. Sports Academy
  • University of Mobile

Federal Housing Administration (FHA) Loans in Alabama

FHA loans are used to help middle and low-income families achieve their dream of owning a home. They require a small down payment and have lower credit score requirements. In Alabama, you also have the option to refinance up to 97.5% of your home’s value or cash-out up to 85% of its value.

Eligibility requirements include:

  • A 3.5% down payment on your property.
  • The home must be your primary residence.
  • If you filed for Chapter 7 bankruptcy, you must wait 2 years (after your bankruptcy was charged off) before applying for an FHA loan.
  • If your home was foreclosed, you must wait 3 years before applying for an FHA loan.

Like many states across the U.S., FHA loan limits vary by county and the size of the property.

Here are the figures by county:

County Single Unit Limit (lowest) Four-Plex Limit (highest)
Autauga County $331,760 $638,100
Baldwin County $331,760 $638,100
Barbour County $331,760 $638,100
Bibb County $331,760 $638,100
Blount County $331,760 $638,100
Bullock County $331,760 $638,100
Butler County $331,760 $638,100
Calhoun County $331,760 $638,100
Chambers County $331,760 $638,100
Cherokee County $331,760 $638,100
Chilton County $331,760 $638,100
Choctaw County $331,760 $638,100
Clarke County $331,760 $638,100
Clay County $331,760 $638,100
Cleburne County $331,760 $638,100
Coffee County $331,760 $638,100
Colbert County $331,760 $638,100
Conecuh County $331,760 $638,100
Coosa County $331,760 $638,100
Covington County $331,760 $638,100
Crenshaw County $331,760 $638,100
Cullman County $331,760 $638,100
Dale County $331,760 $638,100
Dallas County $331,760 $638,100
Dekalb County $331,760 $638,100
Elmore County $331,760 $638,100
Escambia County $331,760 $638,100
Etowah County $331,760 $638,100
Fayette County $331,760 $638,100
Franklin County $331,760 $638,100
Geneva County $331,760 $638,100
Greene County $331,760 $638,100
Hale County $331,760 $638,100
Henry County $331,760 $638,100
Houston County $331,760 $638,100
Jackson County $331,760 $638,100
Jefferson County $331,760 $638,100
Lamar County $331,760 $638,100
Lauderdale County $331,760 $638,100
Lawrence County $331,760 $638,100
Lee County $331,760 $638,100
Limestone County $331,760 $638,100
Lowndes County $331,760 $638,100
Macon County $331,760 $638,100
Madison County $331,760 $638,100
Marengo County $331,760 $638,100
Marion County $331,760 $638,100
Marshall County $331,760 $638,100
Mobile County $331,760 $638,100
Monroe County $331,760 $638,100
Montgomery County $331,760 $638,100
Morgan County $331,760 $638,100
Perry County $331,760 $638,100
Pickens County $331,760 $638,100
Pike County $331,760 $638,100
Randolph County $331,760 $638,100
Russell County $331,760 $638,100
Shelby County $331,760 $638,100
St. Clair County $331,760 $638,100
Sumter County $331,760 $638,100
Talladega County $331,760 $638,100
Tallapoosa County $331,760 $638,100
Tuscaloosa County $331,760 $638,100
Walker County $331,760 $638,100
Washington County $331,760 $638,100
Wilcox County $331,760 $638,100
Winston County $331,760 $638,100

Business Loans in Alabama

As you can see, loan limits remain fairly constant throughout each county. The lowest FHA loan amount is $314,827, while the highest is $636,900. Only three counties in Alabama – Hale, Pickens and Tuscaloosa – allow for higher borrowing amounts than the rest of the state.

If you need a business loan, these online lenders offer reliable service and extremely competitive APRs:

Amount

Up to $10,000,000

APR

Vary

Min Credit Score

0

Licensed in Alabama

Yes

Amount

$5,000 - $500,000

APR

9.77% - 35.98%

Min Credit Score

600

Licensed in Alabama

Yes

Amount

$5,000 - $500,000

APR

5.99% – 35.99%

Min Credit Score

500

Licensed in Alabama

Yes

Amount

Up to $250,000

APR

24% – 99%

Min Credit Score

560

Licensed in Alabama

Yes

Amount

Up to $350,000

APR

9.28 - 10.52%

Min Credit Score

650

Licensed in Alabama

Yes

Amount

Up to $350,000

APR

10.00 - 25.00%

Min Credit Score

680

Licensed in Alabama

Yes

Amount

$75,000 - $5,000,000

APR

5.50 - 8.25%

Min Credit Score

650

Licensed in Alabama

Yes

Amount

Up to $500,000

APR

12.18 - 36.00%

Min Credit Score

660

Licensed in Alabama

Yes

Amount

Up to $500,000

APR

9.00 - 99.00%

Min Credit Score

600

Licensed in Alabama

Yes

Amount

Up to $5,000,000

APR

15.00 - 78.00%

Min Credit Score

600

Licensed in Alabama

Yes

Amount

Up to $1,000,000

APR

Vary

Min Credit Score

0

Licensed in Alabama

Yes

Amount

$6,000 to $250,000

APR

Vary

Min Credit Score

0

Licensed in Alabama

Yes

However, if you don’t qualify for the options above or prefer to deal with a local lender in Alabama, the options below are a solid alternative.

LiftFund Loans

While the company doesn’t disclose its APRs, LiftFund is a non-profit lender that offers as little as $500 to upwards of $1,000,000. Loans are available to business owners in Birmingham, Mobile, Tuscaloosa, Montgomery and Huntsville. The average credit score of LiftFund borrowers is 575 – much lower than traditional banks. As well, if your credit score is less than 575, there is a co-signer option.

All businesses qualify for LiftFund loans except those in the adult entertainment industry. However, if you filed for Chapter 7 bankruptcy in the last two years or Chapter 12 bankruptcy in the last year, you’re ineligible.

To learn more, you can contact LiftFund directly through its website, or visit their branch in Bessemer.

Alabama Banks and Credit Unions

There are a wide range of banks and credit unions in Alabama that offer in-state business loans. Reputable lenders include the First Bank of Alabama, Peoples Bank of Alabama and the Alabama Credit Union. However, loan amounts and APRs vary depending on your businesses needs and the cash flows generated by your company. When deciding between lenders, it’s best to setup an in-house consultation and discuss your options.

How to Avoid Debt Cycle

When bills are piling up, taking out a loan can seem like your only option. However, if you’re not careful, the process can quickly get out of hand. You end up trying to service several loans that continue to compound with interest.

If you’re struggling and not sure where to turn, consider contacting a credit counselor. They can advise you on how to reduce your debt load as well as work with creditors to find an amicable solution. Many are available through non-profit organizations and you can find help through the National Foundation for Credit Counseling.

Through the CFPB’s website, you can also find information on how to develop a debt management plan as well as avoid upfront fees when working with debt settlement companies.

Conclusion

If you’re a resident of Alabama and need a reliable loan, you’ve come to the right place. We found plenty of reputable lenders – both online and in-state – that provide affordable financing. When narrowing your search, we always recommend you start with personal loans. Even for those with bad credit, APRs are capped at 35.99%, so they’re a reliable option. As well, Alabama credit unions are another great alternative. Their APRs are capped at 18%, which makes them extremely affordable. However, before taking out any loan, determine whether the product is regulated by Alabama’s Consumer Credit Act or the Small Loan Act. There is a slight overlap between the two statutes so it’s best to ask ahead for time to avoid any surprises.

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