Getting money from Friends Vs Personal Loan

Q & A Forum › Category: Banking › Getting money from Friends Vs Personal Loan

Sathya NA asked 10 years ago

Hi Srikanth sir, I am in need of money (lets say 4 lakhs) and i have 2 options to get that. Option 1: Getting money from Friend and repay it in 2 years (and i would like to pay 12% interest (annual) to my friend) Option 2: Getting a Personal Loan from a bank (who is willing to give 4 lakhs, 11.99% interest, tenure 2 years). Which one is a good choice. Please advise. Thank you.

4 Answers

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Sreekanth Staff answered 10 years ago

Hi, Given a choice, I will take Option 2 . As much as possible, when I have options, dont want to mix friendship & money :).

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Sreekanth Staff answered 10 years ago

But, personal loan should be your last option. As much as possible try to avoid HIGH COST DEBT. Read: http://www.relakhs.com/promissory-note-loan-agreement-india/ http://www.relakhs.com/personal-financial-mistakes/

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Sathya NA answered 10 years ago

Thank you Sreekanth, it gives a clear message. Happy to get your replies and happy to know you, your blogs.

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Sreekanth Staff answered 10 years ago

You are welcome dear. Kindly share the articles with your friends and keep visiting ReLakhs.com . Cheers!