How to Arrange a Personal Loan From an Individual
- 1). Ask only people you are certain have the money to loan. It can be potentially embarrassing and harmful to personal relationships to ask to borrow cash for a personal purpose from people who do not have enough money themselves.
- 2). Talk openly about why you want the loan and what it will be used for. Be willing to prove your ability to repay, such as through check stubs, just as you would with a traditional corporate lender.
- 3). Explain why you cannot get a loan from a bank, credit union or finance company. This may require you to disclose past hard times, such as personal bankruptcy. If you very recently had serious credit trouble, be able to explain why things have changed in your financial life.
- 4). Offer to sign a contract that says the person loaning you the money can sue you or garnish your wages if you do not pay back the loan.
- 5). Accept rejection politely, and move on to another person who might be more willing to lend you the money. You may also want to offer collateral to back any loan request.
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