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Alabama Interest Rates Laws


More Information on Interest Rate Laws

Legal Maximum Rate of InterestIf agreed upon in writing, up to 8% per year, otherwise 6% per year (§8-8-1)
Penalty for Usury (Unlawful Interest Rate)Forfeiture of all interest and interest paid deducted from principal (§8-8-12)
Interest Rates on JudgmentsOther than costs, dollar judgments bear interest from date of entry at 12%; judgment on contract action bears interest at rate in contract (§8-8-10)
ExceptionsLoans over $2000 (§8-8-5); debts under National Housing Act. Veterans' Benefits acts (§8-8-6); industrial development boards and medical clinic boards (§11-54-97, 11-58-15); bonds issued by public or non-profit organizations (§8-8-7); public housing bonds, State Board of Education Securities (§§24-1-32; 16-3-28); public hospital corporations (§22-21-6)

Note: State laws are constantly changing -- contact an attorney or conduct your own legal research to verify the state law(s) you are researching.

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