www.MamboCash.com

www.MamboCash.com

Payday loans are popular in Alabama, with a large and growing number of lenders offering these short-term loans. The terms of the loans are similar to other states in many regards, but the interest rate, at 17.5% max, is a bit higher than some other states.

- Loan lasts 10 to 31 days
- Maximum amount to borrow is $500
- Interest rate is 17.5% of the loan amount
- Maximum Annual Percentage Rate (APR) is 456.25
- You can borrow only one payday loan at a time
- You are able to extend your short-term loan only once.

Borrowers will be able to take out a maximum of $500 on their payday loan. The terms state that the loan is not repayable for at least ten days, but it must be repaid within thirty days. Most loans have a length of about two weeks or until the next payday.

After the period of the initial loan, along with one rollover, is over, the borrower has to make sure to pay the loan back. If the borrower is unable to pay it back at that time, the lender does have the option of offering an extended option for repaying the loan. This option will include four equal monthly installments that will pay off the remaining balance. If the borrower pays the lender with a check, and the check does not clear when the lender tries to deposit it, the lender has the right to charge an additional fee.

More than a decade ago, 19 different states were part of a legislation push that would cap interest rates on small loans. Alabama was a part of that legislation, but in 2002, a ruling from Judge Eugene Reese allowed payday lenders that were in the state to bypass small loan laws. This allowed the payday lenders to continue charging higher interest rates for those loans. The ruling stands today, and that is one of the reasons the interest rates are a bit higher through many of the lenders in the state.

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