It is not unusual for a relative or friend to ask for a loan from you, promising to pay back at a stipulated date. When such a one asks you for a loan there are two considerations in perspectives. Firstly, the person in question considers you a close ally who understands his or her financial situation and hence will not put him or her through the lending/ borrowing rigours.
Secondly you consider the relationship that exists between you and this person which you will want to maintain not giving room for anything to come between the two of you.
Now how then do you decline lending such one money without hurting his or her feelings or causing a friction in your relationship? Being firm with your decision in declining the loan is important. Ensure that you tell them that you cannot be able to give them the loan without been rude to them.
When you have decline the loan with a firm “NO” there is no need for you to begin to explain to them why you can’t give them the loan as they may succeed in influencing your decision against your wish.
Decline the loan in a polite way without raising your voice because if you do you may severe your relationship even if you end up keeping your money to yourself and I guess this is not what you intend to achieve.
You can offer them little money gifts when you consider that their needs are pressing from monies you have set aside for charitable cause. At least this will save you the trouble of going after them to get back your money from them.
Sometimes some of them don’t even need the loan from you but an advise that will help them channel their little resources well instead of borrowing more to add to their resources from you.
In some cases you may be faced with a request for a loan from a friend or relative who come to tell you that they have certain amount of money for a business but will like to add up to what is at hand from the loan. You can help them out by discussing the business with them, advising them how best they can utilize what is available without incurring debts for themselves.