Money given to friends and relatives is always a charity in the garb of loan which is given in expectation of refund but always taken with intention of non-refund.
Such loan is taken by a person:-
- Who lacks business sense and cannot raise funds out of his own business and suddenly wants to be rich.
- who cannot raise bank loan because :-
he himself is not creditworthy
the purpose for which he seeks loan is illegal
the purpose for which he seeks loan is not at all commercially viable.
- Who knows he can afford not to refund.
- Who trusts his thick skin
- Who intends not to refund
- Who has made fortification against action of refund.
So he has to find someone who can part with his money. SO he finds a lender near him (friend or relative)
Such loans are given by the persons :-
- Who has surplus money.
- Who displays and boasts of such surplus money.
- Who stupidly believe that there will be a refund.
- Fails to realise as to why he alone (not bank) is being contacted for loan.
- Who has extreme trust on the debtor
- who are either stupid or extremely greedy of the unusual (or illegal) rate of interest.
Such loans are always given
- Without documentation.
- Without witness
- Without guarantor.
- During cordial relations
Soon after giving such loan :-
- Relations are no more remain cordial
- Business started by such money (easy money belonging to other) invariably fails.
- Such loans always sink and not refunded.
- Person seeking such refund suffers at legal process.
- Person seeking such refund legally or by persualtion is socially criticised.