(last updated 06/14/2019)
Alabama Personal Loan for Bad Credit Laws and Regulations in (AL)
The Alabama Small Loan Act:
Section 5-18-15: Interest rates, charges, and fees.
Maximum rates of interest and charge. Every licensee under this chapter may contract for and receive as interest on any loan of money less than one thousand dollars ($1,000) an amount at a rate not exceeding three percent a month on that part of the unpaid principal balance not in excess of two hundred dollars ($200), and two percent a month on that part of the unpaid principal balance in excess of two hundred dollars ($200) but less than one thousand dollars ($1,000) Interest after due date of final installment. Interest as provided in this section shall not accrue or be recovered or charged on any loan made under this chapter for any longer than six months after the due date of the final installment of principal or interest. After the expiration of said six-month period, interest may be charged at a rate not to exceed eight percent per annum.
This information is for informational purposes only. Although care has been taken to accurately describe the laws and regulations in Alabama, no guarantees are implied or expressed about its accuracy. This is not legal advice. If you need legal advice, please consult an attorney or the Alabama Banking Department.
The following classes of lending organizations may be exempt from some, all or none of the regulations and laws set by the state of Alabama. Federally chartered banks, state chartered banks, credit unions and some entities organized under the laws of a sovereign nation (for example) a Native American Tribe or the country of Antigua.