Lending Money To My Relative (Urgent)
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since this is personal. u can charge watever you like and as long as he is ok with it
rber to write IOU
in case he not returning the $
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Originally posted by Ladiesman6878:
Hello everyone, I've a situation here and hope I can get the correct answer. First I'm neither a licensed money lender nor loanshark.
Long story short, a relative of mine (Life & Death Situation) approached me couple of days ago to borrow a considerable sum of money. I'll have to charge him interest for the money because that money I loaned him could be invested into elsewhere and brings back potential profits for me.
If I were to loan the money to him, under Singapore law, how many % interest should I be charging him for a period of 1 year so as not to violate the law or consider a loan shark?
If it's against the law to charge him interest which means I will lose my potential profits as well as losing money due to inflation, I'll not loan my money out even if he chooses to jump off the building because I'm not running a charity organization.
unless you're a registered as a money lender else it will be considered as illegal if you're so concern abt law.
i suggest you keep your money cos the way i see you phased your post, it seems to me you look at potential profits and inflation much bigger than your relative jumping down a building, hence keep it and bring in into that wooden box
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No interest can be charge unless you are a licensed money lender. however there are loop holes that can be exploited...
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Originally posted by Twincat:
No interest can be charge unless you are a licensed money lender. however there are loop holes that can be exploited...
the expert has spoken..
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an IOU is rather informal...which renders it difficult to be legally enforced as compared to the use of promissory note and endorsed with the witness of the notary public and seal...
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If he or she defaults on payment,what will you do.??Many lenders says they will pay back,but in the end.....sad story.!
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谈钱伤感情........
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when it comes to $, only then u'll noe who ur true friends really are..
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not fwen leh. relative.
even worse.
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It is treated as bad debts when it leaves your pocket.
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Originally posted by QX179R:
the expert has spoken..
shhh...i not expert...
recovery of money is often very tiresome...
just to add to Fcukpap's point
in black and white pls include that the person will have to pay for any fee incur to recover the money.
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The following questions may help you to come up with a decision: - What are your chances of getting back your money? Is he important to you? Will you get into financial difficulty if he fails to return the money? Will you or your family be greatly affected as a result?
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Especially for relative, no charge interest. For friend also no interest. For lending to loan shark-charge interest. For bank - they give you interest according to market rate.
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Originally posted by FireIce:
since this is personal. u can charge watever you like and as long as he is ok with it
rber to write IOU
in case he not returning the $
FireIce, how can you be so wicked? Threadstarter, please cherish your relatives. They love you so much and yet you treat them so badly. -
For me, I rather be kinless than to have relatives asking me for money. relatives, so what? not a big deal!
Even if I've no relatives to visit dur CNY also never mind one...
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For some advices, let's look at the bible and see what it has to say. Jesus said Do unto others what you want to do unto you.
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Did someone say something about lending money and interests ? =x lol!
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A fool and his money are soon parted.
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Life or death situation of your RELATIVE and you have the cheeks to consider about how much to charge for interest. Seriously????
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We dont know becaue we are not lawyers here.
Maybe yes you should make a visit to a lawyer's office or a notary's office and make a seal.....I am not sure about this.....
But anyways, is it appropriate to charge interest ?
Even if you are not close to the relative......still he / she is a relative to you and your family.
If I am you, I give 0% interest.....in other words, no need interest lah.......how much returns do u expect anyways ? Maybe you can calculate the amount and can consider whether you can waive it.......
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if u treasure his kinship den u shd lend him the $
nth can buy back the kinship once it's lost
even if u millionaire also no1 will care abt u
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obviously the rship with this relative nt bery good. treat as do a good deed
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One way to do it.....wisely...is that......calculate the amount of interest that you can reasonably waive and is acceptable to you, and then work back and arrive at the amount.......
For example if you dont want to waive the interest on 100k lets say, then maybe you give 50k interest-free loan instead. Just say this is the amount that you can afford.
In this way you can avoid some impression that you are being mean by charging interest on a desperate call for help on a life and death situation.
It looks a bit better. Maybe you can consider it.
If the amount is not enough for the relative, it is still ok, he/ she can find others to seek help from for the additional money.
I really think it is a little bit not nice for you to charge interest. You can consider using this method or think of something else.
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Originally posted by FireIce:
obviously the rship with this relative nt bery good.
treat as do a good deed
Cannot, later many relatives come knock on his door