70

                                                                 Exhibit 23








                      CONSENT OF INDEPENDENT AUDITORS




We consent to the incorporation by reference in the Registration Statements
(Form  S-3 Numbers  33-57910  and  33-55803)  of American  General  Finance
Corporation  and in the related  Prospectuses of our  report dated February
14,  1997,  with  respect  to the  consolidated  financial  statements  and
schedule of American General Finance Corporation and subsidiaries  included
in this Annual Report (Form 10-K) for the year ended December 31, 1996.



                                            ERNST & YOUNG, LLP

Indianapolis, Indiana
March 18, 1997