Asking for Personal Cash Loans

As children, we learn to make use of what we have and do without the things we don’t possess. Sometimes, this makes asking for personal cash loans difficult. Going to a bank is one thing because they lend money all the time, but getting a loan from a family member or friend feels different. Consider your approach and the nature of your relationship with care to avoid damaging your friendship during the borrowing process.

Decide how much money you need

Now is the time for realism, not optimism. If you already know you must have $5,000, asking for personal cash loans of only $1,000 does little good. Your friend might all too happy to help you out with the loan, but he doesn’t want to become your personal piggy bank. Asking for the loan amount you need alleviates the issue of running out of funds and coming back for more.

Wait for the appropriate time

Although you might schedule a lunch or an evening out to give you the opportunity to ask for the loan, remember that this is still your friend. Avoid pouncing on her with the request for personal cash loans the moment she arrives. Instead, take the time to find out what’s going on in her life. If she mentions a potential layoff or a costly medical procedure, consider asking someone else with a more positive financial situation. Asking your friend for money when you know she’s on shaky ground herself might make her feel bad when she’s unable to help you.

Offer loan collateral

Even if you don’t have a car or substantial home equity, you may still possess an object of value that the banks won’t accept. Offering collateral shows that you’re serious about repaying the loan. Your friend may tell you that collateral is unnecessary, but will still appreciate the sentiment.

Write it up

Between friends and close family, a handshake is often enough to seal any deal. Rather than relying on your bond, create a loan contract for all personal cash loans just as you would when borrowing from a bank. Again, it proves you’re serious about repaying the loan, but it also clarifies the terms of the arrangement. If the contract states you’re borrowing $5,000 for three years, no one can be upset when you have not paid all the money back after two years.

Say thank you

Your bank doesn’t expect your gratitude for lending you money because it is part of the business. Friends, on the other hand, deserve appreciation for helping you out in your financial time of need. It’s unnecessary to shower them with praise for the loan each time you see them, but a simple thank you when they give you the money and when you repay it will suffice.

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