Alabama Promissory Notes
Create a legally compliant Alabama promissory note that complies with state usury limits and includes all required provisions. Choose the note type that fits your lending situation, fill out the guided form, and download your professional PDF for $7.99.
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Secured Promissory Note
For loans backed by collateral such as a vehicle, property, or equipment. The lender can seize the collateral if the borrower defaults.
Complies with Alabama usury limits (max 8%). Includes collateral description and default remedies.
Create Secured Promissory NoteUnsecured Promissory Note
For loans based solely on the borrower's promise to pay, with no collateral pledged. Common for personal and family loans.
Alabama statute of limitations: 6 years. Max interest rate: 8%.
Create Unsecured Promissory NoteInstallment Promissory Note
For loans repaid in fixed periodic payments over a set term. Includes a detailed payment schedule with amounts and due dates.
Includes amortization-ready payment terms compliant with Alabama usury law (8% max rate).
Create Installment Promissory NoteDemand Promissory Note
Payable in full when the lender demands repayment. No fixed schedule or maturity date. Common for informal arrangements.
Payable on demand under Alabama law. Includes usury savings clause and default provisions.
Create Demand Promissory NoteAlabama Usury Law and Note Requirements
Verified against official Alabama usury statutes and Alabama Circuit Courts guidance. Last reviewed May 2026. How we verify our legal data.
Alabama usury law is governed by Alabama Circuit Courts. The maximum allowable interest rate is 8% (8% by written contract on loans under $2,000; loans of $2,000 or more may bear any rate the parties agree to in writing. 6% legal rate absent a written contract.). Penalties for exceeding the usury limit include: Forfeiture of all interest; interest already paid is deducted from the principal (Ala. Code 8-8-12). The statute of limitations for enforcing a promissory note in Alabama is 6 years. Notarization is not required but recommended. Our documents are designed to comply with Alabama law and include all required provisions.
Frequently Asked Questions
What is the maximum interest rate for a promissory note in Alabama?
Alabama caps the maximum interest rate at 8% (8% by written contract on loans under $2,000; loans of $2,000 or more may bear any rate the parties agree to in writing. 6% legal rate absent a written contract.). Exceeding this limit may result in penalties: Forfeiture of all interest; interest already paid is deducted from the principal (Ala. Code 8-8-12). If no rate is specified, the default legal rate is 6%. Our documents include a usury savings clause for additional protection.
Does a promissory note need to be notarized in Alabama?
Notarization is not legally required in Alabama, but it is strongly recommended. A notarized note is easier to enforce in court and helps verify the identities of all parties. While not required, having 1 witness is recommended.
How much does a Alabama promissory note cost?
Each promissory note costs $7.99. Choose your note type, fill in your details through our guided form, and download your completed, Alabama-compliant PDF instantly. Re-download available for 5 days.
What is Alabama's usury limit for private loans?
Alabama caps interest at 6% per year for contracts that don't specify a rate (Code of Alabama §8-8-1). With a written agreement, parties may contract for up to 8% per year for most loans. Higher rates are allowed for certain commercial transactions and licensed lenders. Alabama's general usury penalty is forfeiture of all interest. Alabama's 6-year statute of limitations applies to written promissory notes.
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