Bariatric and Dental Surgery Loans from Family & Friends

Any surgery is an expensive affair and arranging finances for the same can be difficult. Loans from family and friends are a convenient option for those in dire need of dental and bariatric surgery.

Federal Reserve Board states, "Loans from family and friends add up to $89-million per year in the United States".^[1]

Top Reasons for Requesting Informal Loans

Poor credit score.
No/ limited Insurance.
Loans denied from the bank.
Medical/dental tourism surgery abroad.

Steps for Requesting Loans From Friends & Family

Present your case: Why do you need a loan? How are you going to use the money?
Decide repayment terms: Either monthly installments or a lump sum?
Set up a recurring transfer for payments.
Agree on the lender’s course of action if there is non-payment.

Loan Agreement Between Friends & Family

The loan agreement with family or friends can be formal or informal. It should cover:

Borrowed principal amount.
Interest rate (if any).
Repayment time and method.

Online services such as Prosper Inc. & Virgin Money offer to make arrangements for Loans between friends and family.^[2]

Questions about medical loans?

Reach out to us for any queries

Pros and Cons of Loans of Love

Pros	Cons
No forms to be filled	Lack of clarity
Low or no interest	Payment default damages relations
Flexible repayment	Social Awkwardness

Individuals take informal loans from other sources, such as moneylenders, because borrowing from a stranger is business-like.^[3]

Legal Standing of the Loan Agreement

Like any loan contract, you’re legally on the hook for the debt.
Borrowing money is considered a type of verbal agreement.
It has the same legal standing as many other types of debts.
With the contract as proof, the lending party can sue in small claims court, get a judgment and then pursue collection activities on the loan.^[4]

Quick Tips: How To Approach for a Loan

Be crystal clear about your own expectations - specify how long you need the money for.
Be specific about the loan amount.
Detail the repayment level you can afford.
Draw up a formal written agreement.
Plan a realistic repayment schedule.
If you find yourself struggling to make repayments, be upfront and ask if you can pay smaller amounts or temporarily stop paying until you're in a better financial situation.

According to Mark Beyer, a financial advisor with Edward Jones: “Document everything. As each payment is made, send a confirmation note. It may seem a bit formal, but you will be thankful when a dispute arises over how many payments have been made to date.’’^[5]