Is it good idea to borrow from friends?

Lending and friends are usually considered a bad relationship, like that of oil and water. But it can work if done the right way. There are many wrong ways people do it, but we are here to see how to make friendship and money lending work the right way.

ust the same way you borrow from a financial institution that you are friendly with, so can you borrow from a friend that you are familiar with when you are stuck.

However, unlike financial institutions and digital lenders that will offer you extension and understand when you can’t pay on time, friends might be wary of you if you can’t pay on time as you promised.

The rules you follow when borrowing from a bank differs with those you follow when borrowing from a friend. If you are in that place where you have to run to a friend for money, you have to understand a few things.

Borrowing is not bad

According to this article by the Metro, “many people vehemently advise against lending to a friend because they have been burnt”.

The first thing you need to understand is that you can’t live in this world alone, and it is reasonable to ask for financial assistance, everyone does. Borrowing is frowned upon, but even governments borrow from each other; skills, money etc.

No one is self-sufficient with everything. And thus you have to understand that borrowing is not that bad. But just don’t be a bother.

What people don’t want is a constant borrower. And I think that is the difference between borrowing from an institution and a friend, you can borrow as much as you want from a bank as long as you pay back on time without defaulting.

You can borrow from a bank every month with no problem, it is a business to them as long as you keep paying back within the time.

However, with friends, it might be odd to borrow all the time. And that means you have to go slow with the borrowing. Do it only when it is very necessary, and you can’t seem to think of any other quick option. A situation that is rare considering the many digital lenders in the market. But yea, if you find yourself between a rock and a hard place, you can run to your friends.

Because that is what friends are for anyway, the good and bad times.

Lend from a confidant

It ought to be someone you are really tight with. You just can’t just borrow from a one-week-old friend. It has to be a guy you go way back with. You know the kind of friend you share a lot with.

The ones you call BFF on social media. They will just understand that you are human, after all. In fact, I can say borrow from just one friend who also borrows from you.

And this is one way I can say that lending from a bank and a friend kind of overlaps. Kenyans are known to borrow from one institution that they are used to. And which is understanding of their business ideas and willing to fund them?

In fact, that’s how many banks have positioned themselves in the market…as partners.

The same way you borrow from one loyal friend who understands your situations all the time.

I am text block. Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

You just can’t go around borrowing from many friends at the same time either. You want to avoid being the guy who is known in his social circle for lending from his comrades.

Keep your word

No one wants to borrow a friend who goes MIA after the help, just the same way a financial institution or a bank won’t lend to someone with a bad credit history. So, this is just a reminder to organise yourself and pay off the debt so as to keep the trust in the relationship strong.

With banks, if you have a history of paying within time, they will always be happy to loan you all the time.

Remember, this is friendship, and one quality of a good friend is the ability to keep his or her word. Without trust, the relationship is dead. In case you might not be able to pay as you promised, it is good to tell them in advance that you won’t be able to in advance.

Even digital lenders do this when your deadline is around the corner, and you are still not able to repay, they can give you a rain check.

It is common for most people to overestimate their ability to handle money properly, even millionaires run into bankruptcy because they have been overwhelmed by debts.

You might need more time than you thought to finish your debt.

Join a Chama

Why not just join a Chama. A Chama is made up of a group of friends, 3 or more who spend some time drinking together, playing beer pong and talking about life…okay, that is not the formal description but that is how Chamas start.

Friends join together and start making small monthly contributions.

And when one of them has a trouble or a business to start, they simply lend from the Chama and payback later sometimes with a little interest. It is a financial nest.

That’s why lending from a friend is kind of rare among financially literate friends. They form chamas and borrow from that instead.

Even men have chamas, back in the day, it was women who used to form them. But the current 21st-century men also join chama with his boys.

Avoid shylocks

Oh boy, this is a no-go zone. I don’t like telling people what to do and not to do, but I will tell you to avoid this. Those guys can come and take all your stuff because you haven’t paid back.

You can’t negotiate with these shylocks.

They are not your friends.

That’s why the title is about ‘friendship and lending’. And actually, you usually pay a shylock with some interest.

Why not just borrow from the numerous financial institutions in the market? They will not harass you like shylocks, and what’s more their interests after lending you is not that high as that of shylocks.

And thus, choose better lending options.


In conclusion, no one is above lending. Once in a blue moon, you find yourself in tricky situations that are hard to escape, and you might have to call on a friend.

It is not a bad thing if you do it the right way.

However, bear in mind that friends are a last resort when it comes to lending… It may be risky and may lead to spoiling the precious relationship.

Thus consider digital lending institutions – you will be better off with them;)

Help us change for the better!
We need your vote to improve further and provide you with the best possible and free loan comparison site in Kenya!

1 Star2 Stars3 Stars4 Stars5 Stars (2 votes, average: 5.00 out of 5)