I'm not a bank. Why are people asking me for money?
Five reasons why someone might reach out to you for money.
We all have that one friend or family member who, at some point in our lives, has come to us for financial help.
It’s actually a really common request for support. Friends and family are among the largest “banks” in the world, loaning $184 Billion annually -- oftentimes in the form of handshake loans and IOUs. But, more often than not, these informal paper-napkin IOUs result in broken or strained relationships.
If you’ve found that a college friend, a parent or the people you care about usually come to you for financial advice or even support, you may be wondering – why me!?
It’s a great question! Banks, payday lenders and financial institutions have been around for hundreds of years – successfully lending money to people in need for a variety of reasons. So, why would your people be coming to you for this kind of support instead of an institution?
We met with hundreds of real people who use Zirtue to borrow money. Here’s a list of the top five reasons this group preferred borrowing from a loved one instead of a bank or payday lender.
1.) Personal relationships:
Family members may feel more comfortable asking for money from someone they know and trust instead of a stranger at a financial institution.
Family members may prefer to work with someone who is more flexible in terms of repayment schedules and lower-or-no-interest rates, as opposed to the strict policies of a financial institution.
Some people may not want to go through the formal process of applying for a loan at a bank or credit union, or they may not want to have their credit checked. So, borrowing from a friend or family member can offer more privacy and may be less intrusive.
4.) Faster access to funds:
Borrowing from a family member can provide faster access to funds, as there is no need to go through the formal loan application process at a financial institution.
5.) Emotional support:
Some people may feel more comfortable asking for a loan from a family member because they feel they will receive emotional support and understanding.
Whether to lend money or not can be a tough decision to make. But, if you’re considering lending money to someone you care about, we’re here for you. With the Zirtue app, you can set up a loan repayment installment plan between friends, family and trusted relationships.