Lending Money to Friends and Family – When to Say No

I believe in helping friends and family. What’s the point of having money if we can’t support our near and dear ones? I must admit, there have been situations where I have regretted lending money. Once, someone delayed the payment to unbelieving long time and started avoiding us. The other time, we saw this person splurging money on luxuries without even bothering to return our money. One should never lend their hard earned money to undeserving people, no matter how close the relation is. There comes a point when saying NO is the best call. After a few unsavory experiences, I have learned to say no on these occasions -

When Someone Wants Money for a Luxury Purchase

This one is a definite no-no. Lending money to support education, medical emergency or to make the deficit for a big investment, like a house, is understandable. But lending money to buy a car is not. This is among the few situations where I refuse to lend money. There are certain purchases that can certainly wait. Making for the shortfall for a car’s down payment doesn’t call for a loan from a friend. Unless the livelihood depends on it.


  1. This is a problem we have to face at some points in life... a much needed, useful discussion...

  2. Lending only to those really in need is only sensible

  3. so how will you recognize the real needy one ?

  4. This is one such issue that we all have been facing at some point or the other in our lives.. A much needed post dear! Thank you!

  5. Absolutely not for luxe show-offs. Emergency must be the only reason... For me, I don't know if for big investments like buying house home fits in or not. Good info. Saru Thanks for this :)

  6. Haha sometime we know that they are not going to give it back yet we feel compelled because they are our loved ones though

  7. Saying no is such a difficult thing though necessary. Practical and helpful info Saru.


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