Lending to Family and Friends

When deciding whether to lend money to a family member, consider the need, potential consequences, and whether it will help the borrower. The Bible has much to say about lending, including helping those in need and being cautious of wealth gained hastily. Before lending, ask yourself if the borrower can repay the loan, if you can afford to lose the money, and if you can help in another way. Finally, draw up a written agreement specifying the amount, interest rate, payment structure, and collateral to eliminate misunderstandings.