How to ask a family member for a loan

Do you need to borrow money? Do you want to ask a family member for help but don’t know how to go about it? If so, here are some tips on how to ask.

Go to someone you trust
Before asking a distant cousin for a loan, try asking a family member who’s close to you like a parent or sibling. Someone who knows you well will likely be more inclined to help.

Arrange an in-person meeting
It’s best to ask for a loan in person. This way you can discuss the amount you need and why you need it. Remember to be specific and, if possible, bring documentation to show how the money will be used.

Put together a proposal
Be prepared to let your family member know how you plan to pay them back and when. You may also want to talk about why loaning you the money is a safe investment. For example, you could highlight:

• Your reliability
• The profitability of your endeavor
• The profitability of your past endeavors
• Your experience
• The interest you’ll pay

In addition, share your plan for what you’ll do if you have trouble paying back the loan. By doing so, you’ll reassure your loved ones that their money is safe and you’ve considered their interests.

To make the transaction official, it’s a good idea to sign an amicable or notarized agreement. A lawyer or notary can help you create this type of document.