Personal loans in Benton, AL
Personal loans in Benton, Alabama are mostly unsecured, so the APR you see reflects how a lender reads your credit. Benton is a small community, with roughly 38 residents and a size rank of 456th in Alabama. Benton lost roughly 7.3% of its population across the 2020-to-2023 comparison. A single loan can carry different costs on either side of a state line, because each state sets its own lending rules. Judge offers on total cost, not on how quickly the money arrives. The next larger city is White Hall, AL about 6 miles away.
Borrowing in Benton: the local picture
Set out below is Benton's local context next to the state-level rules that reach every lender here.
- Population: 38 residents; Benton is the 456th-largest of 462 places in Alabama (US Census Bureau, Vintage 2023).
- Population trend: About 7.3% below the 2020 Census base.
- Size percentile: by population it outranks roughly 1% of the places in Alabama.
- Location: the Census Gazetteer records it at 32.3079, -86.8175.
- Nearest larger cities: White Hall (6 mi); Mosses (12 mi); Gordonville (12 mi); Lowndesboro (12 mi); Autaugaville (13 mi). Online lenders reach Benton no matter how far the nearest branch is.
- Nearest smaller towns: Oak Hill (31 mi); Dayton (48 mi); Emelle (92 mi) — useful context for the surrounding area.
What Alabama law requires in Benton
Every row below records a Alabama rule, its publisher and its retrieval date.
| Rule | Detail | Source |
|---|---|---|
| Payday lending status | Permitted — deferred presentment services licensed by the supervisor; maximum advance $500; maximum fee 17.5% of amount advanced Source says: "a maximum fee on any deferred presentment transaction not to exceed 17.5 percent of the amount advanced"; "The maximum amount that may be advanced in any deferred presentment transaction is five hundred dollars ($500)". | Alabama State Banking Department — Deferred Presentment Services Act (Code of Alabama §§ 5-18A-1 et seq.) as of 2026-09-16 |
| Small-loan / installment lender licensing | Alabama Small Loan Act license required from the supervisor for loans under $1,500; interest capped at 3% per month on the first $200 and 2% per month on $200–$1,500 Source says: "No person shall engage in the business of lending in amounts of less than one thousand five hundred dollars ($1,500)"; "without first having obtained a license from the supervisor"; "not exceeding three percent a month on that part of the unpaid principal balance not in excess of two hundred dollars". | Alabama State Banking Department — Alabama Small Loan Act (Code of Alabama §§ 5-18-1 et seq.) as of 2026-09-16 |
| State lending regulator | Alabama State Banking Department — Bureau of Loans (BOL) Source says: "The Bureau of Loans (hereinafter “the BOL”) was established in 1945". The BOL administers the Small Loan Act, Consumer Credit Act, Pawn Shop Act, Mortgage Brokers Licensing Act, Deferred Presentment Services Act and SAFE Act. | Alabama State Banking Department as of 2026-09-16 |
| Parity lending rate provision (§ 8-8-1.1) | Any lender may charge the same rates as any federally or state-chartered or licensed lending institution in Alabama Source says: "may, on any loans or extensions of credit made by them, charge or impose the same rate of interest or finance charge". | Alabama Legislature — Code of Alabama 1975, § 8-8-1.1 as of 2026-09-16 |
| Maximum legal interest rate (usury cap) | 6% per annum without a written contract; 8% per annum by written contract Source says: "except by written contract is $6 upon $100 for one year"; "the rate of interest by written contract is not to exceed $8 upon $100 for one year". (Code text retrieved from the Alabama Legislature's official Code of Alabama service.) | Alabama Legislature — Code of Alabama 1975, § 8-8-1 as of 2026-09-16 |
What a Benton personal loan looks like
A personal loan in Benton is an installment loan: a lump sum up front, repaid in fixed monthly payments over a set term, usually two to seven years. Most scoring models treat rate-shopping within a focused window as one inquiry, so comparing offers early is usually safe. The rate you see advertised is a range, not a promise, until a lender reviews your file.
A pre-application checklist for Benton
Before you sign anything in Benton, run through this list:
- Order your free credit reports and dispute anything inaccurate — it is the cheapest way to move the rate you are offered.
- Price the payment first with our personal loan calculator before any lender quotes you.
- Pre-qualify with three or more lenders, then compare the APR rather than the interest rate.
- Confirm the lender holds a Alabama licence by checking the regulator named above.
- Read the disclosure for an origination fee and any prepayment penalty before signing.
Common questions
What are my options in Benton if my credit is poor?
Borrowing is still possible, but expect a higher APR and a smaller approved amount. Lenders that accept lower scores hold statewide licences, so what is open to you in Benton is the same as anywhere in Alabama.
What loan size can I expect in Benton?
Most personal loans sit somewhere between $1,000 and $50,000, though the figure you are approved for turns on the lender, your income and your credit. Model the monthly payment first with our personal loan calculator.
Do I have to pledge anything to borrow in Benton?
For an unsecured personal loan, no — there is nothing to pledge. A secured loan, such as home equity or one secured by a vehicle, does require collateral, and default puts that asset at risk.
Does comparing loans in Benton cost me credit score points?
Not during pre-qualification, which normally uses a soft pull and leaves your score alone. Submitting a full application triggers a hard inquiry, which can trim a few points briefly.
Nearby places
- White Hall, AL — population 756
- Mosses, AL — population 789
- Gordonville, AL — population 232
- Autaugaville, AL — population 804
- Lowndesboro, AL — population 78
- Selma, AL — population 16,666
- Hayneville, AL — population 777
- Valley Grande, AL — population 3,982