Being constantly approached by a family for a loan can be very annoying, and also a source of embarrassment because you want to say no, but find it difficult to do so. There are many downsides to lending or getting a loan from someone you know. This is applicable to even your own kids. It may be more beneficial for them to get the loan from a lender, and you want to advise them to do so, but do not know how. Here are some tips to help you encourage your family member to get a personal loan, but first let us look at why it may be a bad idea for you to supply the loan.