I have listened to lots of people narrate how their longtime relationship with a friend was destroyed because of their inability or refusal to refund borrowed money.
Most of the time, I blame them – the lender – for being financially naïve and irresponsible.
They failed to understand that it is only banks that have the right to lend out large amounts of money they “cannot” afford to GIVE.
That’s because, if you fail to return at the agreed date, they have the authority to foreclose on your property or seize your collateral.
You won’t have the mind to do this to your brother or friend. The highest you can do is go to court or harbour the person in your mind which does not really help matters.
To be on the safe side, I advise you lend only the amount that will not make a huge difference to your personal finance or business budget. That way, if the borrower fails to refund your money, you’ll discover that you have nothing much to lose.
See also: Faithfulness Applies to Money Too