It is sometimes said that borrowing money from a friend can harm or damage the friendship. Do you agree? Why or why not? Use reasons and specific examples to explain your answer.
Borrowing money from a friend is a risky proposition. The relationship can be at stake in case money is not paid back. However, unforeseen circumstances can make one borrow money from a friend. Many people believe that borrowing money from a friend can damage the friendship. I do not agree with this statement for the following reasons which I will explore further in the essay.
First, the repayment period is flexible when money is taken from a friend. With money borrowed from a bank or a money lender, a definite time period is set for the repayment. The legal and contractual agreements state the consequences, in case these requirements are not met. Money borrowed from a friend does not come with a legal requirement for the timely payment. Most of the time it is the mutual trust which makes a party lend money to the other. A friend generally go by the policy "Pay me back whenever you can". Thus, one can get ample time prior to repayment without any serious consequences.
Second, there are zero or lower interest rates with no security or collateral. Banks and private money lenders often ask for a collateral or security to lend money. With inflation on rise, interest rates are soaring which further adds to the debt. A friend can lend money with a zero or lower interest and without a collateral. It is quite relieving to pay back the principal amount with no interest and eases the pressure off when faced with an emergency. For example, to start a small business one may not have capital on hand. The stringent terms and conditions of a bank makes it almost impossible to get a loan early. In such cases, it is more convenient to seek out help from a friend. Also, there are no worries about property repossession which is a concern with bank loans.
In conclusion, borrowing money from a friend is a more convenient and flexible option one can have. With no interest payments and no pressure to pay back in a defined frame of time, it is quite a beneficial proposition. Though it can jeopardize a relationship in case the money is not paid back,on the positive side it may strengthen the bond of friendship during difficult times when a financial help is desired.