Polonius in William Shakespeare’s Hamlet said that mixing loans and relations was damaging because “for loan oft loses both itself and friend.”  But how dangerous is it to loan/borrow from friends and family?
Let’s look at some advantages and disadvantages of borrowing from family and friends:
Pros:

Low interest rates, if any
Instant access to money
Banks are tight, only means to obtain funds

Cons:

Relationship is jeopardized if loan is not paid
Financial situation is no longer private
No protection due to not being formal

Financial transactions between people with personal ties tend to …

Qualifying for a low-interest rate loan is an ambition many have but a dream few realize. Unfortunately, securing a loan at optimal rates can be an incredibly difficult feat to conquer. Although every lending institution establishes its own criteria and guidelines for issuing loans, most reserve stringent income, credit, and savings standards when it comes to evaluating a loan applicant and awarding the lowest interest rate possible.
Naturally, some lenders are considerably more flexible than others and therefore willing to work with borrowers who have diverse and even less-than-favorable financial histories. …