Title-secured loans are permitted in Alaska when a lender follows the Alaska Small Loans Act and the applicable licensing rules. For covered loans up to $25,000, Alaska uses tiered monthly interest rather than one flat APR: 3% per month on the first $850 of unpaid principal, 2% on the next $9,150, and a contract rate on the remainder up to $25,000. Statutory repayment limits depend on the loan size.
Last reviewed: August 13, 2026. This page provides general consumer information, not legal advice.
Is a title loan legal in Alaska?
Yes, but a high-rate consumer loan under $25,000 must be made through the Alaska Small Loans Act framework. The Alaska Division of Banking and Securities licenses and examines small loan companies, investigates consumer complaints, and can take enforcement action. Its consumer-finance guidance says that a company charging the higher rates permitted by AS 06.20 on loans under $25,000 must hold an Alaska Small Loan Act license; mortgage lenders in that situation also need the applicable mortgage broker/lender license.
Alaska’s rules regulate the loan and lender rather than establishing a separate title-loan code. A vehicle may secure a covered loan, and the Act expressly addresses the cost of recording, releasing, transferring, or noting a motor-vehicle lien. Before accepting an offer, verify the lender’s name and license, then read the collateral, payment, default, and lien-release language in the actual agreement.
Sources: Alaska Division of Banking and Securities consumer-finance guidance, Alaska Small Loans Act, AS 06.20, and Division complaint information.
Alaska title loan limits
| Rule | Alaska limit or requirement |
|---|---|
| Maximum APR / interest rate | Alaska uses a tiered monthly rate, not one flat APR, for covered loans: up to 3% per month on unpaid principal of $850 or less, 2% per month on the portion above $850 through $10,000, and a contract rate on the remainder above $10,000 through $25,000. AS 06.20.230. |
| Maximum loan amount | A Small Loans Act licensee may lend up to $25,000 under AS 06.20.230. This statutory ceiling is not a promise that any lender will approve that amount or lend against a vehicle at that amount. |
| Minimum / maximum term | For non-open-end loans: up to $1,000 may run no more than 24.5 months; over $1,000 to $2,500, 48.5 months; over $2,500 to $5,000, 60.5 months; and over $5,000 to $25,000, as agreed by the parties. AS 06.20.250. |
| Rollovers or renewals | The Act does not state a separate title-loan rollover count in the cited provisions. Interest generally may not be paid or deducted in advance, may be charged only on unpaid principal, and may not be compounded. AS 06.20.250. |
| Repossession notice period | The cited Small Loans Act provisions do not establish one title-loan-specific notice period before repossession. The contract and applicable secured-transactions law govern default, possession, notice of sale, and disposition. Keep every notice and request the lender’s written policy. |
| Right to cure / prepay | A licensee must permit advance payment in any amount at any time; it may apply the payment first to interest accrued through the date of payment. On full repayment, it must cancel and return the security and release any mortgage. AS 06.20.270. |
| Surplus return after sale | The cited Small Loans Act provisions do not state a title-loan-specific surplus formula. Ask the lender for a post-sale accounting, including sale proceeds, repossession costs, the remaining balance, and any available surplus or deficiency information. |
What you need to apply in Alaska
The lender must give you a clear written loan statement when the loan is made. Under AS 06.20.270, that statement must show the amount and date of the loan, maturity, security, borrower and lender names and addresses, and agreed rate of charge. In a title-secured transaction, the agreement should also identify the vehicle, lien process, insurance requirements if any, payment dates, late-charge terms, default events, and process for releasing the lien after payoff.
A lender may request identification, vehicle ownership information, registration, income information, insurance details, and proof of address. Those are lender underwriting practices, not a complete statutory checklist. Do not hand over title-related documents until you have the lender’s legal identity, the signed disclosure, and a copy of the agreement to retain.
How repossession works in Alaska
A vehicle lien can lead to repossession after a contract default, but Alaska’s Small Loans Act does not provide a single title-loan-specific deadline for a pre-repossession notice. The Act allows actual repossession expenses and costs as a permitted charge, so the agreement’s default and collateral sections matter. Review them before you borrow and ask the lender how it applies sale proceeds, costs, and any remaining balance.
Save the contract, payment receipts, texts, letters, and any collection notices. If you believe the lender’s disclosure, rate, fees, licensing, or collection conduct violates Alaska law, the Division of Banking and Securities accepts complaints with supporting documents. The Division can investigate regulatory violations, but it does not act as a private attorney or recover money damages for an individual borrower.
Licensed alternatives in Alaska
State assistance and nonprofit legal services may help cover a temporary expense without placing a vehicle at risk. These programs are Alaska-specific and are not loan offers.
- Food and household support: Alaska’s SNAP program provides food benefits to eligible low-income households through the Alaska Quest card.
- Heating expense: the Alaska Heating Assistance Program helps eligible residents offset home-heating costs and prioritizes qualifying heating emergencies.
- General benefits: the Division of Public Assistance offers applications for financial aid, medical coverage, nutrition support, child-care assistance, and other programs through Alaska Connect.
- Credit-union small loans: the NCUA’s Payday Alternative Loan rule materials describe a product that some federal credit unions may offer. Contact an Alaska credit union directly to confirm availability and eligibility.
- Loan concern: use the Division of Banking and Securities complaint process and include the signed agreement, disclosures, payment history, and notices.
Cities we serve in Alaska
Alaska location pages remain subject to the execution plan’s lender-relationship and quality review. This statewide page is the source for Alaska licensing, rate, repayment, lien, and borrower-rights information until each local destination is individually confirmed.
Frequently asked questions
Are car title loans legal in Alaska?
Yes. Alaska permits title-secured consumer loans when they comply with the Alaska Small Loans Act and applicable licensing requirements. The Division of Banking and Securities licenses and examines small loan companies. Confirm the lender’s legal name and license, then keep the written disclosure and collateral agreement before you proceed.
What interest rate can an Alaska small loan lender charge?
For a covered loan up to $25,000, Alaska uses a tiered monthly charge: 3% on the first $850 of unpaid principal, 2% on the portion from $850 through $10,000, and a contract rate on the remainder up to $25,000. This is not one flat APR, so request the disclosed APR and total finance charge.
How long can an Alaska title-secured loan last?
For covered non-open-end loans, the maximum scheduled repayment term is 24.5 months up to $1,000, 48.5 months from $1,000 to $2,500, and 60.5 months from $2,500 to $5,000. Loans above $5,000 and up to $25,000 may have a term agreed by the parties.
Can I pay an Alaska title loan off early?
Yes. Alaska law requires a small loan licensee to permit advance payment in any amount at any time. Upon full repayment, the lender must cancel and return the security and release any mortgage. Get a written payoff amount and confirmation that the vehicle lien has been released.
Where can I report an Alaska title lender?
Submit a complaint to Alaska’s Division of Banking and Securities and attach the agreement, payment history, notices, and information identifying the lender. The Division investigates regulatory violations and may take licensing or enforcement action, but it cannot serve as your private attorney or pursue your personal damages claim.
