Alabama is a state located in the southern region of the United States of America. There are several lenders in Alabama who lends Alabama Payday Loans. As payday loans were legalized in Alabama in 2003. Residents of Alabama like any other residents of the world use Alabama Payday Loans to face the financial dearth. Alabama court in its judgment gave a decision that Payday Loans differ from small loans and hence should not be treated as same. This historic judgment legalizes the Alabama Payday Loans.

Alabama Payday loan legislation put forward some laws. The Alabama Small Loans Act prevents lenders from charging more than 36% APR on small, short-term loans. The permitted time period is a minimum of 10 days and a maximum of 31 days. The maximum amount of the payday loan allowable is $500.00. No more than one rollover is allowed.

Alabama Payday Loans are becoming popular and as of September of 2004, there were approximately 997 licensed payday loan shops in Alabama.