6. Set up a Repayment Plan

First plan everything and then get it in writing. You can use a loan calculator to input your loan terms and generate the list of due dates and amounts that make up your payment schedule. Or you can also hire a professional to manage you loan and do the necessary tasks, such as loan documentation, monthly repayment reminders and accounting, year-end reports, and loan restructuring if necessary. This professional management proves useful in times of tax filing when both parties require a year-end report documenting interest payments if the borrower wants to claim some tax deduction (especially over the interest paid against home loan or student loan).

More: 15 Factors to Consider Before Investing In IPOs

7. Build a Credit History

Keep a good credit history, and then only anyone from family will not hesitate to lend you a loan even if it involves a heavy amount. Many a times we come across circumstances where we stand equity-rich but cash-poor. So at that time when you take intra-family loan, don’t forget to pay it back in full and on time agreed by the lender. The best is to send a check in advance of each due date or use the hassle-free electronic fund transfers every month. This will help you maintain a good credit record and the next time you approach your folks with a loan request, they will not think twice before opening their wallet to help you.

Also Read: 11 Financial Lessons to Learn From Lord 'Ganesha'