Lending Money – Lending money at interest, or on what is called a usury, is the business of money-lenders; and this they do most commonly by taking mortgages on lands and goods.
The law, in many countries, ordains they shall take no more than a certain percentage, or a small part of the fruits; and in most countries they cannot take the whole; but even this small percentage too often proves very exorbitant.
In Turkey, usury law has been in place since the early 19th century. It is part of the constitution that was made in 1924 and amended in 1961. Its name is Article 183. Their law restricts the interest rates that can be charged for loans to 5% above prime lending interest. The prime rate in Turkey is 5%.
When a friend or a family member asks you for money you can be faced with a delicate situation. Thinking it is your duty to help that person, sometimes you end up hurting yourself. Try, when you can’t resist a close person, to analyze first all the data of the problem.
1. Analyze with you heart and mind
When you consider whether or not to lend someone money, you should use the same objectivity as a bank.
If you are lending to a friend or family member, you should be looking at the same objective factors to determine whether or not their financial situation is adequate.
If you can’t lend to them directly, especially if they are asking for a short-term loan, it is better to help them find a bank loan.
2. Consult with someone else
In my opinion, when you get a request for money from a friend, you should always get a second opinion. This way, you can separate your emotions from the request and ask yourself if this is something you would do for another friend in the same situation. It’s always good to talk to someone who can provide objective advice and help you see things with a less personal filter.
3. Don’t be afraid to say no
When it comes to social situations, you need to consider your comfort level. If a situation is too risky, don’t hesitate to turn it down. Make sure you explain why you can’t be there, and try to help the person with other options. You don’t want someone to leave feeling badly or with a negative impression of you, so try to frame the conversation in such a way that your friend understands that you’re refusing the request, not them. A great example of this is making plans
4. Lending equals giving a gift?
An effective way to approach this situation is to show your friend that you’ve considered that he or she no longer needs the money. You can tell him or her that since the situation has changed, you’ll be happy to take the money back.
5. For your safety, sign a contract
When you’re about to give away large sums of money, you want to make sure that they will be returned. A contract is a great way to ensure that the conditions of your offer, such as the date they expect the money to be returned and the number of installments you will give them, are spelled out for both parties.