A mate of mine has just been declined a loan for a new car. When he told me this I told him I could lend him the money and at a better rate of interest than he was offered.
When I've lent money to mates before, 9/10 I haven't seen it again (although it's always been less than £100 so not too bothered). However this is a much larger amount of money and I am worried that although he has the best intentions of paying it back now if for whatever reason he couldn't pay me back one month then it turn nasty and I could lose a mate out of it. Am I right in saying under no circumstances should you loan large amounts of money to mates? Plus I've heard it's illegal to charge interest on loaned money, is this true? Normally I wouldn't but I can easily get about 5% if I lock it away for a year.