Lending a significant amount of money to a friend

Hi all!

I’m going to lend a significant amount of money to a friend (around 5k). The idea is that she will pay me back little by little every month.

Does anyone know if I need to do anything in particular so I don’t have any issues? Should I contact Monzo in any form or it should be alright?


You’ll be fine to be fair, their bank might ask the questions if they don’t usually get £5k in from other people, but otherwise you’re good.

sign a contract with your friend …witnessed with the terms and repayments


In addition, Monzo might ask questions to ensure that you aren’t being scammed.

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Very true.

Don’t lend money to a friend that you’re not prepared to lose with no hard feelings.

People’s circumstances can change.


Both of these for sure, but especially the first one. At the end of the day, your friend is still a debtor of your’s so you need to ensure they don’t take the piss basically. Circumstances do change of course which is why these are both excellent advice pieces.

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Good on you, but it is not something I would be willing to do. Money ruins friendships. Be prepared in your head to write it off as a gift. And ask yourself, after you lend it and they miss a payment back to you (which they will at some point - not necessarily deliberatly), will you be getting frustrated when they buy some new shoes/clothes/holiday/whatever? You will judge how they spend the money you lend them and the money they don’t pay back. It is human nature.


I’ve watched too many episodes of Judge Judy to ever loan anyone any money on that level. Couple of hundred quid, sure but never £5k.


Rinder too. I saw one episode where one party was suing* the other for not having paid back a loan yet. Naturally Rinder kept asking if there was a contract. Amazingly, there was! Albeit back of the napkin style affair.

As I recall they still basically lost, though, as the contract didn’t state when the money should be paid back by, nor what penalties there should be for late payment.


Judge Judy / Rinder fan and expert here too :raised_hand: :sweat_smile:

I’ve seen similar when the agreement is ‘I’ll pay you back a bit each month’. Unless you specify a fixed date each month and an amount to pay, they lose their case as the friend is still paying “what they can”.