If you decide to borrow money, it is best to have an open and open debate about the possible problems or consequences of the loan. If you don`t want to borrow money, slowly turn down the credit and identify the best alternative to help your friend or loved ones. (Read: `5 personal financial mistakes I made..)) Interest is a way for the lender to calculate money on the loan and offset the risk associated with the transaction. Hello Sir, I am taking out a loan (interest-free loan) of my sister`s Rs 5 Lakhs for the purchase at home. Is it advisable to enter into a credit contract to avoid any tax impact on me or my sister? Please advise him repeatedly to return the loan amount. He hangs out over and over again. In the event of a subsequent disagreement, a simple agreement will serve as evidence to a neutral third party, such as a judge, who can help enforce the treaty. (a) provide accurate and accurate information. b) to finance the amount accepted to the borrower. (c) maintain a sufficient balance in the bank`s account for the payment of a co-payment of the borrower`s loan amount. (d) the correct completion of all the conditions of imequability provided for in this loan agreement.