How to Ask a Family Member for a Loan

Asking to borrow money is never easy. It can be embarrassing, like a person is admitting that they can't take care of their responsibilities on their own. The situation becomes even more delicate if the person you are asking to loan you money is a family member. Here are some tips for asking a family member for a loan.

Instructions

1. Be considerate. If you know that a certain family member does not have any extra money to loan or is currently experiencing financial hardship, it's probably not a good idea to ask them for a loan. They will probably not lend it to you and they may view you as inconsiderate or callous for even asking.

2. Ask in moderation. If the amount of money you need is large, it might be a good idea to not ask one family member to loan you the entire lump sum. Calculate how much of the money you can come up with on your own and ask to borrow only the amount that you can't pay for yourself. Consider asking more than one family member for help; get them together and explain that you need a large sum of money but would like each of them to loan you a portion of the total so that there is not a large financial strain on either of them.

3. Borrow in a timely fashion. If you have a financial obligation coming up that you know you will not be able to take care of on your own, it reflects better on you if you ask for a loan ahead of time rather than scramble to find the money at the last minute. Asking in advance shows family members that you are responsible and capable of planning ahead; waiting until the deadline makes you appear careless.

4. Set up a repayment plan. Any loan between family members will be better negotiated with a repayment plan in place. This lets your family members know that you have every intention of paying them back and that you are not taking advantage of them. It may also help alleviate any feelings of guilt you may experience over having to turn to your family for financial assistance. Choose a deadline together for the entire amount of the loan to be paid back and organize a schedule according to when you get paid or when you know you will have extra money that you can make payments on the loan.

5. Put it in writing. If the terms of the loan are clearly written down and agreed upon by you and the family member giving you the loan, there can be no confusion about the amount of the loan or the terms of the agreement. Draw up a contract that clearly states the details both of you have agreed to, including the amount of the loan, the date it is being given and the date repayment is expected.