The Right Way to Borrow Money From Someone You Know
Most people usually have family members or friends who are more well-off or have some extra funds, for one reason or another. For some, they can be a kind and reliable source of assistance when there Is a need for extra cash to pay for overdue rent, bills or unexpected expenses.
For those who are well-off or have some extra funds, they have the opportunity to loan money to friends or family who may be in short-term need. If you are temporarily short on cash, now may be the right time to reach out to someone you know who has some funds that they might not immediately need.
Making the Ask
Most of us find it awkward to ask somebody we know for money. Having to admit that you are short on funds can be difficult but placing that burden on someone else is hard too. And what if your request is rejected? That is reason enough for many to simply not ask in the first place.
A survey conducted by LendAmi found that 42% of people are not comfortable asking for a loan from a friend or family member so won’t at all, and another 34% aren’t comfortable either but will if they really need to.
But there is a right way to ask that removes the awkwardness, increases your chances of getting the loan and helps ensure that the loan is paid back as agreed upon. Most personal loans between people who know each other are done verbally which is the root cause of most lending conflicts later. Successful loan requests, however, include honesty, responsibility and follow-through.
Most personal loans between people who know each other are done verbally which is the root cause of most lending conflicts later,
Successful loan requests, however, include honesty, responsibility and follow-through.
Eight Must-Do’s for Successfully Requesting and Transacting a Person-to-Person Loans from Friends or Family
Check out our infographic of the eight tips for requesting a personal loan from someone you know and getting it.
Setting Up Your Repayment Plan
Once you’ve agreed to terms and received you loan, making good on your payments can be challenging for some. It’s not always a problem of having the money; oftentimes, people simply forget. This is frustrating for the lender who really doesn’t want to have to harass you for payment.
Paying back your lender on time can be easy using a person-to-person lending platform, like LendAmi, that uses automatic bank transfers from borrower to lender on the agreed upon schedule.
This eliminates the forgetfulness aspect and assures the lender that their money is coming back to them on time. Reminders to borrower and alerts to the lender when payments are made keep the loan status transparent and both parties happy with the outcome.