Sample Letter of Borrowing Money From a Friend in 2024

Although there are different types of salary advance loans, financial emergencies can be so abrupt that you may not get any of them. Borrowing money from one of your best friends may be your last option. Although asking a friend for money over a phone call or in-person seems easy, it can sometimes be the most awkward thing.

Therefore, people consider writing a brief letter to request money from a friend a more comfortable and respectful approach. Even if someone is your friend, do not assume they have no urgent financial plans and constraints. 

Consider being sensitive, honest, and respectful when borrowing money from them via a letter. We have a sample letter of borrowing money from a friend below. Read it to know how to write yours perfectly.

How to Borrow Money From a Friend by Writing a Simple Letter

We all need an immediate boost when facing an unexpected financial crisis. If you have an emergency, a friend may come through for you faster than any bank, Sacco society, or employer. 

Also, your buddy can give you a more flexible loan repayment plan than other lenders. However, before checking our sample letter of borrowing money from a friend, reflect on the following questions: 

  • Is the Personal Loan Necessary? – Perhaps you can take the time to explore other funding options. Maybe your employer could assist you with a salary advance loan. Ensure you borrow money from friends only after other solutions fail. 
  • Can I Repay the Lsalary advance loan? – Before requesting money from a pal, think about your repayment plan. How will you repay their cash if you have recently lost your job? Borrow money from your friends only if you have a viable income source to help you refund the money. If you’ve lost your job, you may request your friend to host you until you find another income source instead of borrowing them a loan.
  • How Can This Affect My Friendship with Him or Her? – True friends are hard to find nowadays, and we should strive to keep them. If you default on a friend’s loan, the situation can ruin your relationship forever. Think about this repercussion when figuring out your loan repayment plan. 

Also Read: How To Create An Emergency Fund

Plan How to Get the Loan

If you can repay the loan smoothly, determine the best way to ask for it. Study your financial crisis closely to determine the amount you should borrow. Do not understate the amount because you feel embarrassed to ask for the money. 

Consider your friend’s financial situation when figuring out how to borrow money. If you want to ask them for money in the middle of the month, they may not give you the whole amount. They might also have financial matters they are solving. 

Even if they have the money to give you, they might be away or too engaged with work to attend to your problem. So, opt for the best time to get a loan from them.

Write a Letter to Borrow Money From Your Friend

Now you are sure you need a loan from a friend. The next thing is to learn how to write a letter asking them for the money. 

Here is my sample letter that I wrote to my friend Jenifer, borrowing her $1,000 and everything was successful. Explore it and write yours accordingly:

Reference: Requesting for Your Financial Help

Dear Jenifer,

I trust you are doing okay and will receive this letter well. I am facing an emergency financial crisis that I cannot handle alone. As you might know, my son got ill suddenly a few days ago. I took him to the hospital, and he is recovering well. 

I initially thought I could pay his medical bill alone, but it has grown so big. After exploring various financial sources, I have not found anything viable. I cannot think of anyone better to support me than you. 

Kindly assist me with $1,000. I plan to repay this amount within three months. I want to pay it in three monthly installments. I understand this is a huge request to make. However, I assure you that I have reflected on other solutions before involving you. 

I value our friendship so much and would understand if you cannot manage to help me right now. I appreciate your consideration of my financial request in advance. Feel free to discuss this matter further at the most convenient time.

Yours Sincerely,


Handling Your Friend’s Response

After receiving your letter, your friend will read it and decide based on their current financial situation. If they can assist you, they will give you a positive response. If they cannot assist you right now, they will tell you so.

The most essential thing is to accept whatever the outcome. If your friend can assist you with some of the money, appreciate it and thank them for it. Respect their honesty and show your gratitude. 

Formalize Your Agreement

If your friend responds positively, you can make them trust you more by creating a formal loan agreement letter. They can use this letter as proof that they lent you the money and you have refused to repay it. 

Nobody would wish to default on a friend’s loan, but it can happen to you. That is why you should write an agreement letter stipulating the loan repayment terms you are most comfortable with. The letter should reveal the:

  • Lender
  • Borrower
  • Loan amount
  • Duration of the loan
  • Installments of the loan or the lump sum amount
  • A third-party witness and their signature.

A legal loan agreement letter should include a third-party witness. They should sign the letter to indicate that they observed the financial arrangement between your friend and you. Here are some tips for writing a loan agreement letter:

  • Identify the lender and borrower by their names in the first paragraph.
  • Next, state the loan amount and the date you requested it. For instance, Jenifer loaned Susan $1,000 on December 11, 2023. 
  • Add the loan interest rate to the body of your letter, if any, in the next paragraph. Unlike payday lenders and banks, a friend is likely to ask you to refund only the principal amount.
  • Explain your agreements regarding loan repayment terms. If you will pay a lump sum after getting your paycheck or money from a business deal, state it in the letter. If you will pay in installments, enter the amount you agreed to pay every week, two weeks, or month.
  • State the expiry date of your loan. If you will pay within three months, for instance, note it on the letter. Add the repayment schedule to the body of the letter showing when you will make the first and the last payment. 
  • Add official signatures and dates to the letter. Both parties should officially sign the loan agreement letter. Ensure a third party is present to witness the signing process. Choose someone with a neutral relationship with you and your friend. 

Repay the Loan

After signing the loan agreement letter in the presence of a witness, you can now solve your financial crisis in peace. As you spend the loan money, remember to honor the promises made in the letter. Repay the loan just as you noted in the letter. 

If you make a payment late due to unforeseen circumstances, like a late salary payment, inform your friend. Communicating any changes that might affect your ability to pay on time is crucial in maintaining your friendship. A letter of borrowing money from a friend is easy to write, as you have seen above. Once you convince your friend to give you a loan, enter into a legal agreement to avoid conflicts in the future.