Famsa Loans: The Good, The Bad, and The Ugly Truth

Famsa loans is a Mexican financial services company that offers personal loans, furniture financing, and other consumer credit products. The company has over 300 locations across Mexico and Texas and provides loans primarily to Hispanic customers.

Some key things to know about Famsa loans:

  • Types of Loans – Famsa offers personal installment loans from $300 to $10,000. Loan terms range from 10 months to 36 months. They also provide financing for furniture, appliances, electronics, and jewelry purchased at Famsa stores.

  • Target Market – Famsa caters to Hispanic consumers, especially recent immigrants with limited credit history. Many customers may not qualify for traditional bank loans.

  • Application Process – Applying for a Famsa loan requires a government-issued ID, proof of income, and references. There is no credit check. Approvals can happen quickly in-store.

  • Pros – Easy approval process, fast funding, flexible terms, no prepayment penalties. Helpful for those with no credit or bad credit.

  • Cons – High interest rates from 29.99% to 69.99% APR. Additional fees like late fees. Must visit store to apply.

Overall, Famsa provides an accessible borrowing option for underserved Hispanic communities. But customers should be aware of the high costs associated with their loans.

Qualifying for a Famsa Loan

Famsa has some basic requirements borrowers must meet to qualify for a personal loan. These include:

Credit Score

  • Famsa requires a minimum credit score of 550 to qualify for a loan. The higher your score, the better the loan terms you may qualify for.

  • Applicants with credit scores below 550 may still potentially qualify by applying with a creditworthy cosigner who has good credit.


  • Famsa requires borrowers to provide proof of income, such as recent pay stubs, to verify you have enough income to repay the loan.

  • Generally, Famsa looks for monthly income of at least $1,200 for approval. Higher incomes may qualify you for larger loan amounts.


  • When applying for a Famsa loan, you’ll need to provide documentation to verify your identity, income, and employment.

  • Required documents include a valid government-issued ID, recent pay stubs covering one month, and proof of residence such as a utility bill.

  • If you are self-employed, you may need to provide business licenses, tax returns, bank statements or other documentation of your income sources.

  • Having these documents ready will help speed up the loan application and approval process.

Interest Rates and Fees

Famsa offers personal installment loans with interest rates ranging from around 18% to 29% APR depending on your creditworthiness. This is fairly standard for a subprime lender that serves borrowers with poor credit scores.

When taking out a Famsa loan, you will typically pay an origination fee of around 5-10% of the loan amount. This fee is deducted from the loan proceeds when the funds are disbursed. For example, if you are approved for a $1,000 loan, you may receive around $900-$950 after the origination fee.

Famsa charges late fees if you miss a payment. The late fee is usually around $10 or 5% of the missed payment amount, whichever is greater. If you are more than 10 days late, you may also be charged a late penalty of $15 or 5% on the overdue amount.

Famsa does not charge any prepayment penalties if you pay off your loan early. You can pay back the full balance ahead of schedule without incurring extra fees. However, any prepaid amount is first applied to accrued interest before being applied to principal.

Loan Amounts and Terms

Famsa offers personal installment loans ranging from $500 to $10,000. The exact loan amount you qualify for will depend on factors like your income, credit score, and existing debt obligations.

Loan terms at Famsa typically range from 3 months up to 36 months. Shorter term loans have higher monthly payments but less interest paid over the life of the loan. Longer term loans have lower monthly payments but more interest accrues.

When applying for a Famsa loan, you can select your ideal loan amount and term length. The company will then assess your application and extend an offer based on the loan details they are able to approve you for.

Some key points on Famsa loan amounts and terms:

  • Minimum Loan Amount: $500
  • Maximum Loan Amount: $10,000
  • Loan Terms: 3 to 36 months
  • Loan amount and term will depend on creditworthiness
  • You select desired amount and term in application
  • Famsa will make final approval decision on loan details

The loan amounts and terms that Famsa offers provide multiple options to fit various financial needs. Just keep in mind that shorter term loans cost less over time but require higher monthly payments.

Application Process

Applying for a Famsa loan is a straightforward process. Here are the steps to take:

How to Apply

You can apply for a Famsa loan online, over the phone, or by visiting a Famsa store location. The easiest way is to apply online through the Famsa website. You’ll need to provide some basic personal and financial information.

Documents Needed

When applying for a Famsa loan, you’ll need to have the following documents ready:

  • Photo ID like a driver’s license or passport
  • Proof of income such as recent pay stubs or bank statements
  • Social security number
  • Information on the item you want to purchase and its price

Approval Process

Famsa states that they can often provide an instant loan decision during the application process. They review factors like your income, credit history, and ability to repay the loan.

For some applicants, Famsa may request additional verification documents before providing a final loan decision. This may add 1-2 days to the process.


Here is the typical timeline for getting a Famsa loan:

  • Apply online, by phone, or in store – 5-10 minutes
  • Get an instant decision in many cases – minutes
  • Provide additional documents if requested – 1-2 days
  • Get final loan decision if more review needed – 1-2 days
  • Sign loan agreement documentation – minutes to 1 day
  • Pick up your loan check or get funds deposited – 1-3 days

So in many cases, you can complete the entire application process and get approved for a Famsa loan in just a few minutes. Allow up to 1 week if additional verification is needed.

Making Payments

Famsa offers multiple options for making loan payments to fit your needs.

Payment Options

You can pay your Famsa loan through several convenient payment options:

  • In person at any Famsa store location
  • Over the phone
  • By mail
  • Online through your Famsa account
  • Automatic bank draft

Paying online or setting up automatic payments can help make sure your payments are on time each month.


One of the easiest ways to pay is to enroll in automatic payments through the Famsa website. This securely links your Famsa account to your bank account. Your monthly payment will then be automatically deducted on your due date.

Setting up autopay can give you peace of mind that your payment will be on time every month. It also helps avoid late fees.

Late Payments

If you miss a payment, Famsa will assess a late fee. The late fee is a percentage of your monthly payment amount.

If you cannot make a payment, it’s important to contact Famsa before your due date. There may be options available to help avoid late fees.

Repeated late payments can negatively impact your credit score. It can also lead to further actions by Famsa, such as repossession of collateral.


You have the option to pay more than your monthly minimum payment or pay off your full balance early. There are no prepayment penalties.

Paying extra can help you pay off your loan faster and save on interest charges over the life of the loan. Even small extra amounts can make a difference over time.

Alternatives to Famsa

Famsa is not the only option for getting a personal loan. Here are some alternatives to consider:

Traditional Banks and Credit Unions

Banks and credit unions typically offer personal loans at lower interest rates than Famsa. However, you’ll likely need good to excellent credit to qualify. The loan application and approval process may also take longer.


  • Lower interest rates
  • Flexible terms
  • Established institutions


  • Strict credit requirements
  • Slower application and funding

Online Lenders

There are many online lenders like LendingClub and Prosper that offer quick personal loans. Rates may be comparable or slightly higher than Famsa. Approval can be easier for those with fair to good credit.


  • Fast online applications
  • Approvals for fair credit
  • Competitive rates
  • Quick funding


  • Higher rates than banks
  • Origination and admin fees
  • Less flexibility

Payday and Title Loans

Payday and title loans provide quick cash, but have very high interest rates. They should only be used as an absolute last resort.


  • Extremely fast funding
  • Minimal eligibility requirements


  • Sky-high interest rates
  • Balloon payments
  • Risk of falling into debt traps

Credit Cards

Many credit cards offer 0% intro APR promotions on purchases and balance transfers. This can provide interest-free financing for 6-18 months.


  • 0% promotional financing
  • Easy access to existing credit


  • High ongoing interest rates
  • Credit card debt can accumulate

Pros of Famsa Loans

Famsa loans provide several advantages that make them an attractive borrowing option for some consumers. Here are some of the key pros of Famsa loans:

Fast Funding

One of the biggest pros of Famsa loans is that they can provide funding very quickly. Once you complete the simple application process, you may be able to get approved and receive your loan funds on the same day in many cases. This makes Famsa loans a good option when you need cash urgently and don’t have time to wait through a long approval process.

Flexible Terms

Another advantage of Famsa loans is that they offer flexible repayment terms. You can choose loan terms ranging from 3 months up to 36 months. This allows you to select a monthly payment amount that fits your budget. Longer terms mean lower payments, while shorter terms allow you to pay off the loan faster.

Easy Application

Applying for a Famsa loan is a quick and easy process. There is minimal paperwork required. You can apply online or visit a Famsa store location. Approval decisions are fast, often instant. Qualification is based on income, not your credit score. This makes it easier to get approved, especially if you have bad credit.

Cons of Famsa Loans

Famsa loans can have some significant downsides to be aware of before applying. Some of the key cons include:

High Interest Rates

  • Famsa personal loans typically have very high interest rates compared to loans from traditional banks or credit unions. Their rates often start in the 30-40% APR range.

  • These high rates make Famsa loans expensive to repay over time, especially for larger loans or longer repayment terms. The interest charges add up quickly.

  • Borrowers with lower credit scores are charged the highest rates by Famsa, sometimes exceeding 50% APR. This makes improving your credit first a wise idea.

Prepayment Penalties

  • Famsa loans often come with prepayment penalties if you pay off the loan early. This penalty is usually 2 months of interest.

  • This prepayment penalty makes it costly to refinance or pay off the loan quicker than the original term. You’ll still owe the interest charges even after repaying the principal.

Credit Check Required

  • Famsa runs a hard credit inquiry when you apply for a loan, which can negatively impact your credit score, especially if done frequently.

  • They require a minimum credit score in the 500-550 range. Those with lower scores may not qualify or must take a co-signer.

  • Having bad credit lowers your chances of approval and means you’ll pay a much higher interest rate if approved.

Is a Famsa Loan Right for You?

When determining if a Famsa loan makes sense for your situation, it’s important to weigh the pros and cons carefully. Famsa loans can provide fast access to cash and flexible repayment terms, but they also come with high interest rates and fees.

Before applying for a Famsa loan, first explore some other borrowing options that may be available:

  • Credit cards – While credit card interest rates are high, they are likely lower than a Famsa loan. Only use available credit you can pay off each month.

  • Personal loans from banks/credit unions – These typically have lower rates and allow you to borrow larger amounts. You’ll need good credit to qualify.

  • Borrowing from family or friends – If someone close to you has the means, this can be interest-free. But make sure to formalize terms.

  • 401k loan – If your employer plan allows it, you can borrow from yourself and pay back with interest. Won’t impact credit.

  • Home equity loan – Leverages your home equity for a large, low-rate loan. Closing costs do apply.

  • Payday advance from employer – Some employers provide these no-fee advances on your paycheck.

If these options aren’t viable for your situation, then a Famsa loan may make sense as a last resort. Just be sure to only borrow what you can afford to pay back based on the high rates. Avoid rolling over loans or borrowing again before fully paying off your balance. With careful planning, a Famsa loan can provide temporary financial relief but shouldn’t become a long-term debt solution.

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