Is it legal to lend money at interest in Mexico?

Quick answer

If you lend money habitually or professionally without being a financial entity, you are engaged in an actividad vulnerable (vulnerable activity under AML law) (LFPIORPI art. 17, fracc. IV, amended DOF 16-jul-2025): you must register, identify your clients in every transaction, and file a report with the SAT/UIF when a transaction reaches 1,605 UMA$188,282.55 in 2026 (UMA 2026 = $117.31). Noncompliance is fined per event; compliance is a perfectly manageable administrative process.

Who falls under fracción IV?

The anti-money-laundering law considers a vulnerable activity to be "the habitual or professional offering of mutuo (loan-for-consumption) transactions, or of guarantees, or of the granting of loans or credits, with or without collateral, by parties other than Financial Entities" (LFPIORPI art. 17, fracc. IV). The key words are habitual or professional: an isolated loan to a family member does not make you an obligated party; an operation that is recurring, organized, or offered to the market does — whether you are an individual, an S.A., an S.A.P.I., or the "lender to the trade".

The paragraph was amended on July 16, 2025, as part of the package that tightened the anti-money-laundering regime; if you are reading guides published before that date, check them against the text now in force.

The three obligations (and their 2026 figures)

  1. Registration and enrollment in the vulnerable-activities registry kept by the SAT — Mexico's tax authority — through its PLD (anti-money-laundering) portal, before you start operating as one.
  2. Identify the client in every transaction of the activity: a file with official ID, address, and — where one exists — the beneficial owner (art. 18). No threshold: identification is always required.
  3. Monthly report to the SAT/UIF — the Financial Intelligence Unit — for transactions that reach 1,605 times the daily UMA (Mexico's inflation-indexed reference unit): with the 2026 UMA of $117.31 (INEGI, effective February 1, 2026), the threshold is $188,282.55. Reports are due no later than the 17th of the following month.

On top of that: retain the documentation (10 years), train staff and appoint a compliance officer where applicable, and be careful with cash: art. 32 prohibits settling transactions such as real estate (≥ 8,025 UMA) or vehicles, jewelry, and shares (≥ 3,210 UMA) in cash. Loans are not on that list — but sound private-credit practice is 100% bank transfer, which also gives you an evidentiary trail.

What happens if you don't comply

LFPIORPI fines are assessed per omitted transaction and in UMA — ranges run from hundreds to tens of thousands of UMA depending on the violation, and repeat offenses carry heavier penalties. Worse still: a lending scheme with no identification and no reports looks, in the authorities' eyes, like a laundering machine — exactly the suspicion a legitimate lender cannot afford.

The upside: compliance is an asset

The PLD file the law requires is almost the same file that serious lending already asks for: identification, source of funds, purpose, a contract with fecha cierta (certain date). Complying with the LFPIORPI does not duplicate your work — it formalizes it. And to investors, banks, and loan-portfolio buyers, an originator with its PLD in order is worth more than a "nimble" one that cannot withstand a verification visit. At Tunton, that standard is part of the method.

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Frequently asked questions
Does lending to my brother count as a vulnerable activity?
An isolated loan with no professional intent does not: fracción IV requires a habitual or professional offering. The gray zone begins when there is recurrence, advertising, or organization — several loans a year, at interest, to third parties. At that point, it is wise to assume the regime applies or to seek specialized advice.
Is a report filed for every loan?
Reports are filed for transactions that reach the threshold (1,605 UMA ≈ $188,282.55 in 2026), through the SAT's system, no later than the 17th of the following month. Client identification, by contrast, applies to every transaction of the activity, with no threshold. The law also provides for the aggregation of split transactions.
I comply with the LFPIORPI — does that make me a regulated financial entity?
No. A lender using its own funds still does not require financial authorization; the LFPIORPI imposes administrative anti-money-laundering duties on it, not prudential supervision. It is the difference between being monitored for what you do with information and being regulated as a deposit-taker — we explain it in depth in the article on irregular deposit-taking.