2. Beware of Power Shifts in the Relationship

“Power lies is the hands of the giver”, this is true. The usually trend of borrowing money is between friend to friend, parent to child, child to parent, brother to sister. When you borrow money from them, you’ll experience a power shifts in your relations, regardless of you being elder or more experienced than them. I hope you may have heard the famous money quote which says, “Na Biwi Na Baccha Na Baap Bada Na Bhaiya, Bhai Sabse Bada Rupaiya”. This means that people give more importance to money than their own family members. So don’t compromise your dignity and allow anyone to rule on you, by repaying the loan as soon as possible.

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3. Be Business-Like in Your Dealings

Sometimes being formal and business-like in your approach to borrow loan from a family member, can work magic in your dealing. You must create formal documents i.e. a promissory note; in addition to this you should also mortgage a security (tangible or intangible asset) against the loan amount. You can purchase these documents online and in bookstore, even a lending institution can furnish you the required documents. All these will help you to avoid the hassles of mixing money and relationships.

Also Read: 7 Money Making Myths Busted