Yes. Title loans are legal in Alabama, and lenders must follow Ala. Code § 5-19A-7 (Alabama Pawnshop Act, § 5-19A-1 et seq.).
Title loan rules in Alabama at a glance
| Title-loan law | Ala. Code § 5-19A-7 (Alabama Pawnshop Act, § 5-19A-1 et seq.) |
|---|---|
| Rate cap | 25% of the principal advanced per month (300% APR) |
| Loan term | At least 30 days |
| Rollovers and renewals | No statutory renewal limit in the Alabama Pawnshop Act (Ala. Code § 5-19A-1 et seq.); the monthly pawnshop charge re-accrues each month, with a 30-day grace period after maturity before forfeiture (§§ 5-19A-6, 5-19A-7) |
| Repossession | Allowed after default |
| Time to catch up before repossession | 30 days |
| Owe the balance after the car is sold? | No, the lender cannot collect a remaining balance |
| Lender license | Required (Alabama State Banking Department) |
| Statute | Ala. Code §§ 5-19A-6, 5-19A-7, 5-19A-8 (Alabama Pawnshop Act, § 5-19A-1 et seq.) |
Source: Ala. Code §§ 5-19A-6, 5-19A-7, 5-19A-8 (Alabama Pawnshop Act, § 5-19A-1 et seq.) (read the law). We last checked it against the statute on October 3, 2026. See title loan laws in every state.
What a title loan costs in Alabama
Under Alabama's rate rules, borrowing $500 for 30 days costs $125 in interest or fees, so you repay $625 (300% APR). Your offer may differ.
| Loan | Term | Interest and fees | Total repaid | APR |
|---|---|---|---|---|
| $500 | 30 days | $125 | $625 | 300% |
| $1,000 | 30 days | $250 | $1,250 | 300% |
| $2,500 | 30 days | $625 | $3,125 | 300% |
Check whether the lender adds any fees: the written disclosure must show the full cost and the APR with every fee included.
What happens if you can't repay
If you fall behind, the lender can repossess your car, but Alabama gives you 30 days to catch up on missed payments first. If the car is sold, the lender cannot come after you for any balance the sale did not cover.
If you think you will miss a payment, call the lender before the due date and ask what options it offers.
How to check a lender in Alabama
Title lenders in Alabama must be licensed (Alabama State Banking Department). Search for the lender on the official license lookup before you sign. Lenditup does not check lender licenses for you (see how we verify).
Looking for a loan in Alabama?
A title loan puts your car at risk, so compare it with a personal installment loan first. If a title loan is still the right fit, you can send one request and see what lenders and lending marketplaces in our network offer.
Lenditup is not a lender. Sending a request does not mean you will be approved; each lender sets its own rates and terms within Alabama law.
Title loan questions for Alabama
01What is the most a title lender can charge in Alabama?
02How long is a title loan in Alabama?
03Can I roll over a title loan in Alabama?
04What happens if I can't repay a title loan in Alabama?
05How do I check that a title lender is licensed in Alabama?
06Is Lenditup a title lender in Alabama?
Title loan laws in other states
- Alabama
- Alaska
- Arizona
- California
- Colorado
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Mexico
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Compare every state side by side on the state title loan law table, or read how title loans work and what lenders ask for. Payday loans follow a different law: see payday loan rules in Alabama.