Pelham, AL · South · Allowed
Payday loans in Pelham
Pelham is governed by Alabama's statewide lending law — cities don't set their own loan rules. Storefront payday lending is permitted in Alabama. State law caps what lenders can charge — the limits below are the legal ceiling, and honest lenders stay under it.
The limits below are the legal ceiling — any offer above them is being made outside the law.
Lending storefronts in Pelham
23,050 residents · Shelby County Median household income is $67,907 — above the Alabama median of $48,973.
1 storefront location of 1 company listed in the public directory snapshot below. Categories are the directory's own — verify a store's license with the state regulator before borrowing.
| Lender | Address | Phone | Hours |
|---|---|---|---|
| 1st Franklin Financial Installment Loans | 2631 Pelham Pkwy, 35124 | (205) 621-5846 | Mon 8:30 AM - 5:30 PM · hours vary |
Listing data: public business directory, collected 2022-02-20. Stores close and relocate — confirm with the regulator's license lookup on the Alabama page before visiting. Spot an error? Report it.
The online route in Pelham
A parallel market lends entirely online — application, decision and funding on a website, no storefront. Lenders licensed in Alabama follow the state schedule anywhere in the state, but bank-partner and tribal loans are structured outside state rate limits, and regulators dispute that model.
From the online lenders directory — terms each lender publishes about itself, checked September 2026. Directory only: we are not affiliated and make no availability promises — verify with the lender and the Alabama regulator.
The rules behind the numbers
A payday loan is a short-term, high-cost loan designed to meet immediate cash needs and is not intended for long-term financial solutions.
In practice: borrow $300 for a standard term and the finance charge is $52.5 — $352.5 repaid at the end, about 456% APR. Every compliant lender in Pelham has to fit inside that schedule.
Statute: Ala. Code § 5-18A-1 et seq.
Regulator: Alabama State Banking Department · banking.alabama.gov
Questions people ask in Pelham
Are payday loans legal in Pelham, AL?
Yes. Storefront payday lending is permitted across Alabama, and Pelham runs under the same state rules: maximum loan $500, fees capped at 17.5% of loan amount ($17.50 per $100). A store charging above the cap is operating illegally.
How much would a $300 loan cost me in Pelham?
The same as anywhere in Alabama: state law sets the schedule. On a typical $300 loan the finance charge is about $52.5 — $352.5 repaid at the end of the standard term.
Which lenders have stores in Pelham?
1 storefront is listed in Pelham in our 2022-02-20 directory snapshot (1 different company). The full list with addresses, phones and hours is in the table above.
Who regulates lenders in Pelham?
Complaints about a lender go to the Alabama State Banking Department (banking.alabama.gov) — keep the loan agreement and every fee disclosure you were given.