An automated loan machine, or ALM, is a type of kiosk that allows credit-worthy consumers to obtain loans of a few hundred to a few thousand dollars without having to meet with a loan officer. Consumers using an ALM provide data such as a driver license number, credit card numbers, demographic information, income and employment information, and a loan amount. If the provided data are verified and meet the lender’s minimum requirements, the ALM obtains and evaluates the applicant’s credit report and then offers a loan agreement.
Once signed, the loan is complete and the funds are made available either through a printed check or by electronic deposit into a specified account. ALMs are often confused with ATMs-borrowers should be aware that the loans issued are subject to all the laws and regulations of a normal loan, and that the funds obtained are not a disbursement from their savings accounts.