Borrowing money from family: the advantages and disadvantages – Mini loan?
Not everyone who needs money goes to the bank or to a lender to take out a loan. There are also many people who take out a loan with family and in this way want to pay arrears or make large purchases. Do you need extra money and do you have doubts about borrowing money from family? Then read in this article what the advantages and disadvantages are of borrowing money from family.
Borrowing money from family: the benefits
There are some benefits associated with borrowing money from family members instead of borrowing money from the bank or lender. The most important advantages of taking out a so-called private loan are the following:
- You have a lower interest rate or do not have to pay interest. This makes the loan cheaper.
- You can often repay the loan more flexibly, naturally in consultation with the family member in question.
- You do not have a registration with the BCR of your loan and therefore cannot get into trouble.
Finally, you can often get a loan from family quickly. Where you first have to be checked in the field of creditworthiness at the bank or the lender and you have to fill in all kinds of paperwork, this is not the case when taking out a private loan with family.
Borrowing money from family: the disadvantages
Make no mistake, borrowing money from family not only brings benefits. Some of the disadvantages you may encounter when borrowing money from family are the following:
- You often have no contract. Many see this as an advantage, but it can also be a disadvantage if the relative in question suddenly wants to apply different conditions for the loan.
- A loan with family can also cause tensions and even family fights.
- A loan from family without conditions and rules can cause you to unwise borrow money and get into trouble.
Do you want to take out a loan with family? Then weigh the benefits of the loan well against the disadvantages of making a good decision.
Borrowing money from family can cause problems that you cannot solve. Do you not want to risk family problems and still want the benefits of a private loan? Then choose AskMEloan. The lusts, not the burdens.