If there are alternative personal loan choices then you should explore these first. Complete the agreement and put it in writing.Establish a schedule for debt repayment.
Take into account the monetary and social dangers.To help you have a successful friend and family loan experience we have created a helpful 10 point guide to managing a friend and family loan. This is why it is imperative for everyone to be clear on the terms of the loan and to treat it the same as you would a traditional bank loan. One of the most common complaints we hear from people taking a loan from friends and family is that it can be difficult socially to enter into this type of agreement. Avoiding social friction and establishing terms that both parties feel confident with is key to a successful friend and family loan.
However, a lot depends on how you set up and manage these types of loan. In many cases acquiring a loan from a friend or relative could be far better than applying for a loan from a bank.
