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 - $10,000

Min Credit Score

0

APR

Vary by State

Approval

< 1 Day

Terms

1 - 60 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.

CityAmount AllowedAPR AllowedStatus
Birmingham$500456%Legal
Montgomery$500456%Legal
Huntsville$500456%Legal
Mobile$500456%Legal
Tuscaloosa$500456%Legal
Hoover$500456%Legal
Dothan$500456%Legal
Auburn$500456%Legal
Decatur$500456%Legal
Madison$500456%Legal
Florence$500456%Legal
Phenix City$500456%Legal
Prattville$500456%Legal
Gadsden$500456%Legal
Vestavia Hills$500456%Legal
Alabaster$500456%Legal
Opelika$500456%Legal
Enterprise$500456%Legal
Bessemer$500456%Legal
Homewood$500456%Legal
Northport$500456%Legal
Daphne$500456%Legal
Athens$500456%Legal
Pelham$500456%Legal
Prichard$500456%Legal
Anniston$500456%Legal
Trussville$500456%Legal
Albertville$500456%Legal
Oxford$500456%Legal
Mountain Brook$500456%Legal
Fairhope$500456%Legal
Troy$500456%Legal
Selma$500456%Legal
Helena$500456%Legal
Foley$500456%Legal
Tillmans Corner$500456%Legal
Center Point$500456%Legal
Talladega$500456%Legal
Hueytown$500456%Legal
Cullman$500456%Legal
Millbrook$500456%Legal
Alexander City$500456%Legal
Scottsboro$500456%Legal
Ozark$500456%Legal
Hartselle$500456%Legal
Saraland$500456%Legal
Fort Payne$500456%Legal
Gardendale$500456%Legal
Muscle Shoals$500456%Legal
Jasper$500456%Legal
Pell City$500456%Legal
Calera$500456%Legal
Moody$500456%Legal
Jacksonville$500456%Legal
Chelsea$500456%Legal
Irondale$500456%Legal
Sylacauga$500456%Legal
Leeds$500456%Legal
Eufaula$500456%Legal
Gulf Shores$500456%Legal
Fairfield$500456%Legal
Saks$500456%Legal
Pleasant Grove$500456%Legal
Atmore$500456%Legal
Russellville$500456%Legal
Clay$500456%Legal
Rainbow City$500456%Legal
Boaz$500456%Legal
Meadowbrook$500456%Legal
Valley$500456%Legal
Forestdale$500456%Legal
Fultondale$500456%Legal
Bay Minette$500456%Legal
Sheffield$500456%Legal
Pike Road$500456%Legal
Andalusia$500456%Legal
Southside$500456%Legal
Clanton$500456%Legal
Tuskegee$500456%Legal
Tuscumbia$500456%Legal
Guntersville$500456%Legal
Spanish Fort$500456%Legal
Arab$500456%Legal
Wetumpka$500456%Legal
Greenville$500456%Legal
Pinson$500456%Legal
Brook Highland$500456%Legal
Demopolis$500456%Legal
Moores Mill$500456%Legal
Hamilton$500456%Legal
Montevallo$500456%Legal
Meridianville$500456%Legal
Lincoln$500456%Legal
Oneonta$500456%Legal
Robertsdale$500456%Legal
Opp$500456%Legal
Theodore$500456%Legal
Lanett$500456%Legal
Tarrant$500456%Legal
Satsuma$500456%Legal
Monroeville$500456%Legal
Grayson Valley$500456%Legal
Roanoke$500456%Legal
Orange Beach$500456%Legal
Attalla$500456%Legal
Chickasaw$500456%Legal
Harvest$500456%Legal
Highland Lakes$500456%Legal
Smiths Station$500456%Legal
Brewton$500456%Legal
Midfield$500456%Legal
Fort Rucker$500456%Legal
Glencoe$500456%Legal
Daleville$500456%Legal
Rainsville$500456%Legal
Tallassee$500456%Legal
Childersburg$500456%Legal
Semmes$500456%Legal
Jackson$500456%Legal
Brent$500456%Legal
Margaret$500456%Legal
Headland$500456%Legal
Piedmont$500456%Legal
Pine Level$500456%Legal
Winfield$500456%Legal
Columbiana$500456%Legal
Fayette$500456%Legal
Geneva$500456%Legal
Adamsville$500456%Legal
Hokes Bluff$500456%Legal
Redland$500456%Legal
Argo$500456%Legal
Springville$500456%Legal
Holt$500456%Legal
Holtville$500456%Legal
Grand Bay$500456%Legal
Mount Olive CDP$500456%Legal
Alexandria$500456%Legal
Thomasville$500456%Legal
Haleyville$500456%Legal
Citronelle$500456%Legal
Elba$500456%Legal
Valley Grande$500456%Legal
Odenville$500456%Legal
Evergreen$500456%Legal
Union Springs$500456%Legal
Centre$500456%Legal
Cottondale$500456%Legal
Hazel Green$500456%Legal
Heflin$500456%Legal
Ladonia$500456%Legal
Livingston$500456%Legal
Marion$500456%Legal
West End-Cobb Town$500456%Legal
Hanceville$500456%Legal
Priceville$500456%Legal
Moulton$500456%Legal
Warrior$500456%Legal
Emerald Mountain$500456%Legal
Underwood-Petersville$500456%Legal
Dadeville$500456%Legal
Red Bay$500456%Legal
York$500456%Legal
Weaver$500456%Legal
Kimberly$500456%Legal
Lake View$500456%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 Union9.92% – 18%$5,000
America’s First Federal Credit Union10,80% – 18%Varies
MAX Credit Union8.69% – 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

NameCitySize (Millions)Members
REDSTONE FEDERAL CREDIT UNIONHuntsville$3,188.43342640
AMERICA’S FIRST FEDERAL CREDIT UNIONBirmingham$1,207.49113174
MAX CREDIT UNIONMontgomery$913.54109921
ARMY AVIATION CENTER FEDERAL CREDIT UNIONDaleville$1,033.24105819
LISTERHILL EMPLOYEE’S CREDIT UNIONSheffield$540.8069855
FAMILY SECURITY CREDIT UNIONDecatur$462.0467296
APCO EMPLOYEES CREDIT UNIONBirmingham$2,129.5163784
FAMILY SAVINGS FEDERAL CREDIT UNIONGadsden$281.0458649
ALABAMA ONE CREDIT UNIONTuscaloosa$598.1456986
ALABAMA TELCO CREDIT UNIONBirmingham$573.1154106
ALABAMA CREDIT UNIONTuscaloosa$479.3146346
LEGACY COMMUNITY FEDERAL CREDIT UNIONBirmingham$387.6142358
COMMUNITY CREDIT UNIONGadsden$238.2739765
MUTUAL SAVINGS CREDIT UNIONBirmingham$161.2937143
NEW HORIZONS CREDIT UNIONMobile$187.8632699
AOD FEDERAL CREDIT UNIONBynum$228.9130372
GUARDIAN CREDIT UNIONMontgomery$212.0830310
ALABAMA STATE EMPLOYEES CREDIT UNIONMontgomery$195.3727221
ALABAMA CENTRAL CREDIT UNIONBirmingham$124.5624627
COOSA PINES FEDERAL CREDIT UNIONChildersburg$210.1420608
FORT MCCLELLAN CREDIT UNIONAnniston$167.0320572
ALABAMA TEACHERS CREDIT UNIONGadsden$213.8419482
AUBURN UNIVERSITY FEDERAL CREDIT UNIONAuburn$134.1017496
TVA CREDIT UNIONMuscle Shoals$268.4017474
FIRST EDUCATORS CREDIT UNIONHoover$117.2316451
FIVE STAR CREDIT UNIONDothan$183.5316137
MOBILE EDUCATORS CREDIT UNIONMobile$69.4013617
ECO CREDIT UNIONBirmingham$113.5613591
NORTH ALABAMA EDUCATORS CREDIT UNIONHuntsville$79.3711580
SECURE FIRST CREDIT UNIONBirmingham$46.7210667
HERITAGE SOUTH CREDIT UNIONSylacauga$78.469651
UNIVERSITY OF SOUTH ALABAMA FEDERAL CREDIT UNIONMobile$30.248987
FOUR SEASONS FEDERAL CREDIT UNIONOpelika$45.178825
JEFFERSON COUNTY EMPLOYEES CREDIT UNIONBirmingham$65.548484
TUSCALOOSA TEACHERS CREDIT UNIONTuscaloosa$106.638463
ACIPCO FEDERAL CREDIT UNIONBirmingham$134.827360
RIVERDALE CREDIT UNIONSelma$48.827345
RAILROAD FEDERAL CREDIT UNIONIrondale$107.406809
VALLEY CREDIT UNIONTuscumbia$60.486426
NAHEOLA CREDIT UNIONPennington$72.716109
DCH CREDIT UNIONTuscaloosa$32.455998
IAM COMMUNITY FEDERAL CREDIT UNIONDaleville$37.445945
TUSCALOOSA CREDIT UNIONTuscaloosa$53.505761
WIREGRASS FEDERAL CREDIT UNIONDothan$39.335751
TUSCALOOSA V A FEDERAL CREDIT UNIONTuscaloosa$45.605562
GULF COAST FEDERAL CREDIT UNIONMobile$29.155255
CRAIG CREDIT UNIONSelma$10.855137
TRI-RIVERS FEDERAL CREDIT UNION (TRFCU)Montgomery$18.455058
LANDMARK CREDIT UNIONFairfield$55.204832
THE INFIRMARY FEDERAL CREDIT UNIONMobile$14.004764
WOLVERINE CREDIT UNIONDecatur$22.804743
ROCKET CITY FEDERAL CREDIT UNIONHuntsville$39.004540
FLORENCE FEDERAL CREDIT UNIONFlorence$45.884393
EAST ALABAMA COMMUNITY FEDERAL CREDIT UNION (EAMCFCU)Opelika$10.194198
CHATTAHOOCHEE FEDERAL CREDIT UNIONAdamsville$14.073785
ALABAMA RURAL ELECTRIC FEDERAL CREDIT UNIONMontgomery$27.343658
SOCIAL SECURITY CREDIT UNIONBirmingham$27.023634
BALDWIN COUNTY FEDERAL CREDIT UNIONBay Minette$18.213451
CHAMPION COMMUNITY CREDIT UNIONCourtland$50.333130
AZALEA CITY CREDIT UNIONMobile$19.072954
MILESTONE CREDIT UNIONFultondale$20.582928
CITY CREDIT UNIONTuscaloosa$14.422726
SHORELINE CREDIT UNIONMobile$7.822673
LAUDERDALE COUNTY TEACHERS CREDIT UNIONFlorence$29.412521
ENERGEN CREDIT UNIONBirmingham$20.122463
ELECTRICAL WORKERS NO 558 FEDERAL CREDIT UNIONSheffield$20.212446
OPP-MICOLAS CREDIT UNIONOpp$12.972263
TUSKEGEE FEDERAL CREDIT UNIONTuskegee$5.012240
PIKE TEACHERS CREDIT UNIONTroy$7.902229
BREWTON MILL FEDERAL CREDIT UNIONBrewton$17.932018
ALLIED CREDIT UNIONJackson$13.222002
MCINTOSH CHEMICAL FEDERAL CREDIT UNIONMcintosh$17.951999
ANG FEDERAL CREDIT UNIONBirmingham$19.551931
COVINGTON SCHOOLS FEDERAL CREDIT UNIONAndalusia$16.641856
FEDMONT FEDERAL CREDIT UNIONMontgomery$11.591850
STEVENSON FEDERAL CREDIT UNIONStevenson$16.021834
HEALTH CREDIT UNIONBirmingham$20.771831
CITY OF B’HAM GENERAL EMPLOYEES CREDIT UNIONBirmingham$5.751797
RAILWAY EMPLOYEES CREDIT UNIONMuscle Shoals$16.871752
EBSCO FEDERAL CREDIT UNIONBirmingham$13.341750
MONTGOMERY VA FEDERAL CREDIT UNIONMontgomery$7.741748
BIRMINGHAM POLICE CREDIT UNIONBirmingham$5.401699
TUSCALOOSA COUNTY CREDIT UNIONTuscaloosa$8.621651
MEAD COATED BOARD FEDERAL CREDIT UNIONPhenix City$44.861574
MOBILE POSTAL CREDIT UNIONMobile$10.811530
ALABAMA RIVER CREDIT UNIONMonroeville$14.151488
FEDERAL EMPLOYEES CREDIT UNIONBirmingham$12.351488
PHENIX PRIDE FEDERAL CREDIT UNION (PPFCU)Phenix City$5.031381
L&N EMPLOYEES CREDIT UNIONBirmingham$10.731343
MONROE EDUCATION EMPLOYEES FEDERAL CREDIT UNIONMonroeville$4.311302
PEOPLE’S FIRST FEDERAL CREDIT UNIONTarrant$5.741200
NORTHEAST ALABAMA POSTAL FEDERAL CREDIT UNIONAnniston$14.411180
MOBILE GOVERNMENT EMP. CREDIT UNIONMobile$22.181152
ANDALUSIA MILLS EMPLOYEES CREDIT AS FEDERAL CREDIT UNIONAndalusia$2.761082
SYCAMORE FEDERAL CREDIT UNIONSycamore$10.811078
O’NEAL CREDIT UNIONBirmingham$2.661074
MARVEL CITY FEDERAL CREDIT UNIONBessemer$7.661026
SIXTH AVENUE BAPTIST FEDERAL CREDIT UNIONBirmingham$4.38989
COUNCILL FEDERAL CREDIT UNIONHuntsville$2.95944
N.E.A.R.M.C. EMPLOYEES FEDERAL CREDIT UNIONAnniston$3.25941
BLUE FLAME CREDIT UNIONMobile$7.89907
PROGRESSIVE FEDERAL CREDIT UNIONMobile$6.19894
DEGUSSA EMPLOYEES FEDERAL CREDIT UNIONTheodore$5.69871
NEW PILGRIM FEDERAL CREDIT UNIONBirmingham$1.53853
FIREMAN’S CREDIT UNIONBirmingham$3.91838
ALABAMA POSTAL CREDIT UNIONBirmingham$6.80811
BRASSIES CREDIT UNIONAnniston$8.26749
TVH FEDERAL CREDIT UNIONTuskegee$4.43732
CLARKE EDUCATORS FEDERAL CREDIT UNIONAuburn$2.72729
DEMOPOLIS FEDERAL CREDIT UNIONDemopolis$0.54672
U S PIPE BESSEMER EMPLOYEES FEDERAL CREDIT UNIONBessemer$3.06586
FOGCE FEDERAL CREDIT UNIONEutaw$1.19570
NUCOR EMPLOYEES FEDERAL CREDIT UNIONFort Payne$3.48450
DIXIE CRAFT EMPLOYEES CREDIT UNIONGoodwater$2.72441
CHEMCO CREDIT UNIONMcintosh$4.63418
NORTH ALABAMA PAPERMAKERS FEDERAL CREDIT UNIONStevenson$1.90411
S R I EMPLOYEES FEDERAL CREDIT UNIONBirmingham$6.91409
POSTAL EMPLOYEES CREDIT UNIONHuntsville$3.23384
NRS COMMUNITY DEVELOPMENT FEDERAL CREDIT UNIONBirmingham$0.98359
CHEM FAMILY CREDIT UNIONAnniston$6.33323
TUSCUMBIA FEDERAL CREDIT UNIONTuscumbia$1.44287
ST. JOHNS AME BIRMINGHAM FEDERAL CREDIT UNIONBirmingham$0.05204
EMPLOYEES SAVINGS CREDIT UNIONMontgomery$2.54203
FIRST KINGDOM COMMUNITY FEDERAL CREDIT UNIONSelma$0.15109

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:

CountySingle 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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