Payday Loans in Alabama

Payday loans in different states (Alabama)

A couple of years back, Mr. Thomas needed to obtain a loan for his son’s medical bills as soon as possible. It was an emergency but what could he do? He didn’t have that amount of money in his account at that moment so he decided to drive down to the bank to obtain one. 

Yes! The bank to the rescue. But, on his way, he got stuck in traffic on the highway in Alabama for hours. When he eventually made it out of the traffic, the bank had closed up for the day. He was disappointed and sad without knowing what to do. Do you want to know what saved him?

His ability to obtain online payday loans in Alabama. Yes! That was his saving grace.

Getting a loan has been made very easy. All that is required of you is to go online on your phone, tablet or computer and press a few buttons and just like that, your financial problem is solved. It looks like magic but it isn’t. Gone are the days that you have to join the long and tiring queues when you need financial assistance urgently. 

Now in Alabama, you can obtain a payday loan online at any time of day and in any part of the world with no hassle, provided you meet up with the requirements, of course. That’s right! You don’t need to worry about the bank’s closing hours. Most lending companies are available 24/7 for your requests and applications.

Loan Packages available are:

  1. Payday Loans
  2. Installment Loans
  3. Personal Loans

Payday Loans

Payday loans are short-term loans within the range of 14-31 days of repayment all at once. There is a general interest rate of 17.5% per $100.

Law Status Permitted
Minimum Loan Amount $100
Maximum Loan Amount $500
Minimum Loan Term 10 days
Maximum Loan Term 31 days
Maximum Annual Percentage Rates (APR)% 456%
Additional Fees It doesn’t exceed 17.5% of the loan obtained
Non-Sufficient Fund Fees $30
Number of Simultaneous Loans Neither
Cooling-off Period

Rollover

Only one
Extension, repayment plan A business day after repayment
Default Penalties 3% increment from the initial month of repayment
Credit Score Requirements Nil

Installment Loans:

Installment loans are longer-term loans that borrowers can pay back in monthly installments between 3 months to as long as 36 months.

Law status Permitted
Minimum Loan Amount $1, 000.00
Maximum Loan Amount $5, 000.00
Minimum Loan Term 90 days 
Maximum Loan Term 36 months (3 years)
Minimum Annual Percentage Rates (APR%) 6.63%
Collateral or Guarantor Neither
Credit Score Requirements Minimum of 580

Personal Loans:

Personal loans are lent to borrowers for their personal use such as for vacation, medical bills, repairs etc. It is repaid in installments as well but has a longer term compared to Installment loan. 

Law status Permitted
Minimum Loan Amount $1,000.00
Maximum Loan Amount $35,000.00
Minimum Loan Term 90 days
Maximum Loan Term 60 months (5 years)
Minimum Annual Percentage Rates (APR%) 4.99%
Collateral or Guarantor Neither
Credit Score Requirements Minimum of 630

The Legality of Online Payday Loans in Alabama

The ability to apply for payday online has been enabled by law. The law that governs loan applications whether it is online or offline sees payday loans as deferred presentment transactions. That is, a delayed statement of payment.

Available Alternatives for Payday Loans 

For faster access to cash loans, here are 4 greater alternatives for Payday loans

  • Look out for lending circles

Lending circles usually consist of about 5 to 15 people who can lend money to their members. The possible amount that can be borrowed ranges from $100 to about $2,000. 

  • Credit card cash advance 

Compared to payday loan rates, they charge lesser. Although, Annual Percentage Rate (APR) may be higher. So, carefully check for the terms of the agreement.

  • Get in touch with a Credit counsellor

A good credit counsellor can help you to manage your finances, thereby leading to a faster repayment and working with you to look through alternatives with lower and easier interest rates.

  • Get your friends or family to lend you

Borrowing from either friends or family, or both can save you from paying high costs on interest rates on some Payday loans. Remember not to take this for granted if you choose to go with this. You don’t want to end up losing a friend or family. 

How Payday Loans Online Works

You can obtain a Payday loan online in 5 easy steps:

  1. Carefully check out the prerequisites to see if you check all the boxes.
  2. If you were able to check all the boxes, congratulations. Now, you can proceed to fill out the application and send it for approval. Here, your data such as name and contact address will be asked for, as well as SSN (Social Security Number).
  3. You will receive a message that your loan has been reviewed and granted. You can proceed to either accept or reject the available loan.
  4. After approval, you will be credited after a couple of hours. Some Payday lenders wait until business days before reviewing applications when you make your request during a holiday or on a weekend.                                              
  5. After receiving the cash loan, you will be notified of the due date of repayment. Ensure you meet up to repay on this day. Repayment is just as easy as applying for a cash loan. 

Requirements to obtain a Payday loan

You must:

  • Be 18+ in Alabama
  • Be a legal citizen of the United States of America or has proof of a certificate of permanent residence
  • Live in Alabama
  • Own an active bank account
  • Be employed full time
  • Own an active contact and email address

An instance of a Loan Fee

How much would a borrower pay back after obtaining a $200 payday loan online in Alabama?

For a 14-day term:

Annual Percentage Rate (APR%): 456.25%

Loan Obtained: $200

To return: $235

APR% Calculation= $35/14 days = 2.5 * 365 days= 912.5%

FAQ

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