With unemployment high, requests for loans from friends and family members are on the rise. This can put a potential lender in a difficult position. They do not like to see someone they care about having financial difficulties, but they also know that personal loans can become gifts as default rates are high.
There is also a risk of bruised feelings due to misunderstandings about repayment expectations.
To reduce the risks and potential damage to an important relationship, clearly spelling out terms and expectations up front is vital.
Virgin Money can help you document a personal loan with their Handshake Basic service. And their Handshake Plus service can even handle payment processing. Review their Personal Loan Guide, and pass it along to whomever you are considering loaning to or borrowing from.
