A family loan is a loan between family members. You could create a similar loan arrangement between friends, significant others or roommates. With this type of loan, it’s up to you and the lender to decide how it’s structured. A family loan can have interest or not and be repaid in installments or a lump sum.

A family loan, sometimes called an intra-family loan, is a loan between family members. Family loans are often less formal than personal loans from traditional lenders or in the peer-to-peer (P2P) marketplace, which connects potential investors directly to borrowers.

Family loans are those that are given and received within a family group, instead of a typical lending situation like a bank or credit union, or even a payday lender. Someone who may not be able to qualify for a traditional loan might be inclined to ask a family member for a loan.

A family loan is a private financial arrangement between relatives, where one family member lends money to another. These loans often come with flexible terms, lower interest rates, and less stringent approval criteria than conventional bank loans.