Loan to a friend - security

[Boriyako]

Hi folks

Would like to lend a friend �3,500 to be paid back over 6 months.

I am 57, been around the block once or twice, and am a reasonably good judge of character.
I believe I can trust this person
HOWEVER>>>>>
I have also learnt to be careful.
Any suggestions where I can find some form of standard legally binding (and enforceable) agreement I can get her to sign.
How can she provide surety? - she has a joint savings account with her husband (also a long time friend) that, for reasons that I accept, she does not want to access.
She will pay me the interest that I will lose (lower than what she would be charged for a loan - which is why I want to help out)

Thank you for any advice
Miles

[NORMANTHEDOG]

get a solicitor to draw up a agreement form that she can sign.

[pink-kittens]

My advice?

Never, ever, ever, ever mix friendship with money

[Mumof2]

Hmmm..it's a lot of money to lend,is she not able to borrow from her bank etc.The unwillingness to withdraw from the joint acc sounds dubious especially if they have enough funds in it

To be honest I personally wouldn't lend any of my friends that amount of money

[figure]

I agree with all the above post. But, I will NEVER EVER lend money. If I could afford it, I would give than lend. Don't do it, you may end up losing your money and a friend.

[Twenty20]

Don't do it, never lend money to friends or relatives, it usually ends in trouble all round. What will you do if she doesn't repay you? Would you be happy taking her to Court?

Why can't she arrange an overdraft at her bank if it's only for 6 months? If the bank wont loan her money for such a short period then this should definitely set alarm bells ringing with you.

[Androcles]

I can't tell from what you say if her husband even knows about this potential arrangement. If not, why not? And if not that sounds to me like a ton of trouble if he finds out, and these things always get out somehow.

Take the sensible advice the other contributors have given - don't do it........

[Boriyako]

Thank you all for your advice.

Point taken!

No loan.

[Mamjet]

do it. there wont be any problems.