Title Loans in Alabama

Alabama permits title lending with relatively few restrictions. Title lenders in Alabama must be licensed through the State Banking Department. Borrowers should be aware that Alabama has no caps on interest rates or loan amounts, making it essential to carefully compare offers.

How Title Loans Work in Alabama

In Alabama, title loans work similarly to other states. You provide your vehicle title as collateral and receive a loan based on a percentage of your car's value. The lender places a lien on your title until the loan is repaid. You continue to drive your vehicle during the loan term.

Alabama Title Loan Regulations

Title loans in Alabama are regulated by the State Banking Department. While Alabama requires lenders to be licensed, the state has relatively permissive regulations compared to some other states.

• Lenders must be licensed with the Alabama State Banking Department
• Maximum loan amount: No statutory cap
• Maximum interest rate: No cap
• Cooling-off period: None

Typical Terms in Alabama

While terms vary by lender, here's what you can typically expect:

• Loan amounts: $100 to $10,000+ depending on vehicle value
• APR¹: Often 150% to 300% or higher
• Loan terms: Usually 30 days to 12 months
• Loan-to-value: Typically 25% to 50% of vehicle value