SB 249 Summary

• Increases the maximum loan amount under the Alabama Small Loan Act from $1,000 to $1,500 for licensed lenders.

• Adjusts interest rate structures for loans based on lending authority, with rates of 3% per month on balances up to $200 and 2% per month on balances between $200 and $1,500.

• Establishes a minimum loan term of 3 months and maximum term of 18 months for loans made under alternative rate structures.

• Provides alternative charging methods including acquisition charges up to 10% of principal and tiered monthly account handling charges ranging from $12 to $26 depending on loan amount.

• Applies to loan contracts entered into after the effective date; does not affect existing loan contracts.