Published on Jun 4, 2021Updated on Jul 17, 2023
Close friends and family members are always willing to bail us out of difficult situations. It has been a common practice for decades. However, borrowing money from friends and family can often be complex due to the potential misunderstandings that can damage relationships.
Below are the 5 Main Reasons why you Should Avoid Borrowing Money from Friends and Family:
When money is borrowed from friends, the details of the transactions are not discussed. Few things remain unanswered. Some of them are the duration of repayment, will there be an interest component, what will happen in an unfortunate event, etc. This vagueness can give rise to minor confusion or disputes in the future.
When borrowing from friends, one may feel a loss of self-confidence or morale as it makes him feel like he owes his friends something, and may constantly worry about his self-image until he is able to repay the amount.
This is a major feature of loans taken from friends and relatives. After borrowing from a friend, one may socialize with the same friend, and may be more likely to feel awkward. Many times, such situations have caused the borrower to feel extra sensitive, and otherwise harmless remarks may be perceived as signs of passive aggression.
There may be a situation when the friend who has lent funds may require the money urgently. Being unable to repay them could cause a lot of strain and anxiety.
When you borrow from friends or family, there is certainly a risk of distancing them. There could be uncomfortable or complicated situations in which others get to know. Or it is possible that the friend’s family members do not appreciate it. There could also be discomfort if the friend asks for the money back before you pay him or her.
Based on the scenarios above, it is clearly better to quietly have a straightforward personal loan, in which you pay EMIs to a financer. This will make you retain much valuable peace of mind, and be in charge of your finances without having to depend on others.
With SMFG India Credit, you can get a personal loan interest rate starting from 11.99%. You have the flexibility of repaying your personal loan within a tenure between 12 months to 60 months. The loan amount can go as high as Rs. 2,500,000 depending on your eligibility, which can help you achieve your goals easily.
Below are the Best Reasons to Consider a Loan from SMFG India Credit Instead of Going to your Friends and Family:
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