Family loan is not a private matter. The tax office asks for information, sometimes taxes, and blocks the bank account

A family loan is being treated as a great alternative to bank loans or loans in branch banks, not just because it is usually “cheaper”. It can also be faster (family doesn’t analyze our creditworthiness like banks), and in addition, we can often count on flexibility in terms and repayment dates.

These facilities may be especially important for people who “really” need cash or who are in such a poor financial position that they do not have an opportunity to obtain an “official” loan. Financial help from the family can be invaluable.

However, we cannot forget that the loan remains a loan and the one who granted it has the right to demand its refund. Constant extension of the repayment date or non-fulfillment of promises carries with it the risk that both parties will pay for this loan with great stress, loss of mutual trust, which is then difficult to rebuild.