Hi all, off topic. How to respond to relatives when they ask to borrow money. My uncle is asking for 2L and is saying he will return in a month. He is in the construction business and faces losses during Covid. I know he genuinely needs it. But I'm not sure when or if he will return it. Please help. What to do.

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If u r not sure then maybe u can give like 50k aur 1 lac.. and don't expect it that they will return ur money asap.. this way you'll have ur mental peace and ur uncle might be grateful as well..

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Thank you, it's a good idea. I have 1.5L to my brother in law before Covid. He returned 60k only. His business went into loss. Can ask for 90k from him. So, this time i want to be extra cautious before lending any money

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Lend a fraction, saying that's the best you can do. They can't say you didn't help, and it won't be end of the world for you if they are late or even can't repay.

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True, thank you for responding.

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Tell them you were laid off or facing salary cuts. Always have a sad face for people who don’t matter.

The answer will change if he’s in the list of folks who matter.

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OMG, why I didn't think of this. I was always shy about these things. But never hesitated from giving money. I feel like I should be more smart and practical about these things.

If you are hesitant to give Don't give the entire amount, instead give some ratio which you can handle if they don't return at all.

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You're right. I am leaning towards this option. Thank you

Be polite and say, no lending business with family and friends.

I remember once my brother told me when he got his first job that we should not share our CTC figures with anyone. Relatives will start asking for money as everyone will think you have so much money. At that time, i thought he was being ridiculous. But his fear is coming to reality for me. The reality is that I used to work in TCS earlier, no savings from those 5 years. A few years back i switched to a good CTC so i have only a few of years of savings.

Tell them your entire March and Feb salary gone into Income tax and you are struggling in your personal finance

I have decided to give 1.5L. I told him that most of my savings are locked in mutual funds for the long term. The only reason I melted is my family was broken when I was young. My grandfather paid for my brother's tuition fees. So sometimes people really need help. But if my uncle doesn't return the money, this is the last time I'll be lending money to anyone.

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