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Personal loan
Which is more advisable lending money from bank or friend?
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[QUOTE="Holicent, post: 252269, member: 76163"] [FONT=Verdana] The answer to this question depends on your personal situation. In general, a friend or family member may be more willing to help you out of a financial crisis than a bank would. However, there are some important differences between lending money from a friend versus borrowing from a bank. Consider the following factors when deciding whether to borrow from friends or family: Borrowing from friends and family can hurt relationships. If the loan is not repaid as promised, this can make future interactions awkward and uncomfortable. It may even strain the relationship beyond repair if feelings are hurt over the debt repayment issue. Borrowing from friends and family may involve higher interest rates or fees than borrowing from banks. Banks have strict rules about lending money and will often charge higher interest rates for loans because they cannot afford to take risks with their capital. The interest rate charged by friends or family members is usually determined by how much they feel like lending — which could be considerably more than what banks charge for similar loans. The terms of the loan agreement will likely be less structured than those offered by banks since they will not have established policies that govern their lending practices. This means that it will be harder to predict exactly how much money will be borrowed or when it will be paid back in full. However, some friends or family won't charge any interest on loan, but they might really deal with you than expected if you fail to pay back at due time.[/FONT] [/QUOTE]
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Which is more advisable lending money from bank or friend?
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