Borrowing money from friends and relatives ? Rethink !!

Borrowing money from friends and relatives has been popular in our society for a long period. Most of us have borrowed money from our close friends and relatives at some point of time. Apparently, there is nothing wrong in it. We trust our near and dear ones. We all like to believe that our close friends would be ready to help us in times of distress. After all, as an oft quoted adage says: “A friend in need, is a friend indeed.

The answer to the question whether one should be borrowing money from family and friends should be a resounding “YES” if the following criteria are satisfied:

  1. Your friend or family member is himself rich enough to help you. Most importantly, he has the right amount of cash at his disposal when you need it the most.
  2. You are confident that money in any manner whatsoever will not have an adverse impact on the relationship you share with the other person.
  3. Your source of loan will not disclose it publicly in your social circle and will not affect your social standing.


However, in real life, many of the above criteria are rarely met. For instance, you need money for an emergency medical purpose. Your businessman friend whom you know since childhood is willing enough to help you. However, due to a sudden drop in sales, your friend is experiencing a sudden cash crunch. Despite his best intention, he fails to provide you the money that you so desperately needed.

In another scenario, you might be hesitant to approach a close relative for borrowing money. The hesitation, in this case, is absolutely justified. Examples are not rare, where money has spoiled relationships. If not sorted out in advance, petty issues like delays in payments and higher than standard interest rates can crop up as major points of disagreement. Thus, one cannot be blamed for thinking twice before approaching a close acquaintance with the request of monetary assistance in time of an urgent need.

Unfortunately, even if the above scenarios do not arise, can your friend offer you the comfort of getting money from the confines of your drawing room? That too, with the process being hassle-free without affecting your social status.

Better option than borrowing money from friends/relatives


Given the above context, this article intends to pose a simple question: “If there is a better option, would you still be borrowing money from a friend or family member? “

Talking of a better option, let’s list down and analyze the alternatives one by one. Let’s begin with banks. Each time, we talk about loans, the word ‘bank’ invariably comes to our mind. However, banks are probably no longer the most preferred source for borrowing money. Procedural delays and excessive stress on CIBIL scores have made it difficult to quickly procure unsecured loans from banks. Moreover, undisclosed hidden charges, pre-payment penalties are a major area of concern. These charges come up as a major shock to the borrower at the time of the loan repayment. Private money lenders, obviously cannot feature in the consideration set. Although, these money lenders may not attach too much importance to credit bureau scores, they charge abnormally high interest rates. Repaying the loan becomes a major concern for the borrower in such a circumstance.

Let’s discuss in detail the “better option” when compared to the alternative of borrowing money from friends and family. Peer to Peer lending or P2P lending as it is more commonly known, has been an immensely successful idea in several parts across the globe. A P2P Lending site acts as a platform to connect investors and borrowers. Names like Prosper and Lending Club have not only earned the trust of investors but have also been a source of respite for many borrowers. In India, over the last few years, a large number of P2P Lending sites have mushroomed. However, before proceeding further, it should be clearly stated that not all P2P Lending sites are trustworthy. Out of all the available P2P Lending sites, only a handful could be considered reliable. definitely makes it to the list. This P2P Lending site offers the prospective borrower a unique bouquet of benefits that distinguishes it from the herd. The key benefits offered by I2I Funding could be listed down:

  • Online application from anywhere
  • Quick and hassle free process
  • Quick loan disbursal
  • Transparent fee structure
  • No Pre-payment charges
  • Part-payment facility
  • CIBIL score is not mandatory

At I2I Funding, we rely on a holistic approach to evaluate borrower’s profile. Unlike, traditional lending institutions like banks which rely solely on your CIBIL scores, I2I Funding relies on 50 plus non-traditional data points to assess borrower profile. Parameters like disposable income, educational status and property ownership are taken into account while deciding the eligibility of loan applicants. This gives an additional opportunity to the applicants to prove their credit- worthiness.

Moreover, at I2I Funding, we do not treat borrowers as agents to squeeze money out. On the contrary, all borrowers are treated as an integral part of our extended family. In case of I2I Funding, both borrowers and investors are considered as key stakeholders and accorded the due respect. Most people who borrow money from friends and relatives do so because they feel more at ease while borrowing from their close ones. At I2I Funding, we offer exactly the same value proposition. Right from the first touch-point, the borrowers are made to feel a part of the family. All the requisite information is disclosed leaving no room for ambiguity. Additionally, an active grievance redressal cell promptly addresses any concern that you may have during the course of our relationship.

Therefore, at I2I Funding, you get the best of both the worlds. While, all the benefits of online loan application, hassle-free and paperless process are made available to you, the system is not bereft of a heart sympathetic towards the customer. The consumer acquires the center-stage in all our initiatives. I2I Funding is the friend from whom you can always trust for borrowing money whenever you need. It’s on the basis of this, that we proudly say “Why wait, when I2I Funding is just a click away!!

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    nice written and include almost all significant infos.
    I would like to look extra posts like this .

  • Thank you for publishing this informative article.
    I’m a long time reader but I’ve never actually left a comment.
    I’ve bookmarked your blog and shared this on Facebook. Many thanks again for a quality article!

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