Car Title Loans in Alabama2026 Guide
Alabama is a primary market for title loans with clear regulations under the Pawnshop Act.
Legal Status & Regulations
Governing Law
Ala. Code § 5-19A-1
Last Reviewed: April 2026
Law Summary
Governed by the Alabama Pawnshop Act (Ala. Code § 5-19A-1). Lenders can charge up to 25% per month (300% APR). Loans are typically 30-day terms, and if the loan is not repaid, the lender can repossess the vehicle. The law requires a written pawn ticket and specific disclosures to the borrower regarding the total cost of the loan and the right to redeem the vehicle. Additionally, Alabama law provides that if a vehicle is repossessed, the lender must hold it for a specific period to allow the borrower to redeem it by paying the full amount due plus any storage fees. Borrowers should be aware that failure to redeem within the statutory period results in the loss of the vehicle and any equity they may have had in it.
Real Rate Example in Alabama
A $1,500 loan in Alabama at a typical market rate of 120% APR over 30 days would result in approximately $150 in interest and fees. Always compare multiple offers to find the most competitive rate.
What Documents You Need
- A clear vehicle title in your name
- A valid government-issued ID (Driver's License)
- Proof of residency (Utility bill, etc.)
- Proof of income or ability to repay
- The vehicle itself for a quick inspection
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Max Loan Amount
No limit
Max APR / Rate
No rate cap
Loan Term Range
30 days
Governing Body
Alabama State Banking Department