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How to Ask a Friend for a Personal Loan

Posted June 7th, 2010
by Staff

Asking someone for money is never an easy thing. The fact of the matter is that it can be humbling, at best. In many circumstances, it can be downright embarrassing to ask a friend for a personal loan. It’s not really something you want to do if you can help it, and you usually have to be in pretty dire straits to even consider it.

Still, there are times when it happens. You have a financial problem and, while you could go to a payday loan business and get some fast cash, you know that you can’t afford to pay back the loan that quick and you’ll wind up paying tons and tons in interest if you do. So, you decide to ask a friend.

Here are some things you should do when getting ready to ask a friend for a personal loan:

  • Be professional. Treat the situation with the seriousness that it deserves. This lets your friend know a couple of things. It lets her know you truly are in need of the money, and it lets her know you really do intend to pay it back.
  • Be ready for rejection. Your friend might turn you down. He might not have the cash, or he might not be willing to lend it to you. You can’t let that affect your friendship. Money is a very personal matter, and if someone doesn’t want to part with theirs you need to be respectful and understanding.
  • Offer a formal loan contract. You can pick up a loan contract at your local office supply store. There are also free ones on the Internet. A contract helps to give your friend the peace of mind that you’re going to pay back the loan, and that she has recourse if you don’t.
  • Don’t ask for more than you need. You should also make sure to ask for as much as you do need, otherwise you may find yourself back in a couple of weeks asking for more.
  • Offer terms you can afford. Don’t offer to pay back the loan in two weeks if you can’t do it. Tell your friend what you can afford, and let her make up her mind about whether or not that’s acceptable.

Photo via Ian Sane

Categories: Advice



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