How much money can I lend a family member?

The first thing you need to consider when lending to a family member is if you can really afford to lend the money.

Think about whether lending the money means you’ll have enough for potential expenditures in the future.

If it’s currently in savings, you’ll also need to bear in mind that this can affect the interest you earn. Before making this decision, we always recommend speaking to a financial advisor to help you consider all possibilities.

Additionally, can your family member actually afford to pay you back? You should as a minimum ask them why they do not want to borrow from the bank. Valid reasons could be that the Bank demands too much security or they believe the interest rate the bank is charging is excessive.