Would You Lend A Neighbour Money?

[Neeranam]

My daughter's teacher has asked me to lend her some money, through my wife, of course.

I can't see her running away with the amount of 20,000 baht.

She said she would pay 3% a month interest, which is well below the "normal" rate. I know that some of the local money lenders charge 20% per month.

I am going to give her the cash but ask for something in writing.

I think that she may well be lending it to someone else for a higher rate of interest.

What would you do?

I don't want to piss off the school, making it hard for my daughter.

Edited August 24, 2005 by Neeranam

[sriracha john]

How about holding onto some collateral as well as the written note... I would imagine perhaps she has some gold?

[Eric Davis]

Not give her a dime.

[bkkmadness]

If you really decide to do it, then make sure you are getting some cash back from it, some decent profit. If she really wants to lend it to someone at a higher rate, then give her a higher rate too. Business at the end of the day aint it.

Something in writing with collateral is the best way dude. Fix the rates and stick to it. Of course if she lends it to someone else though and that someone else cant pay one month she wont have the cash for you.

One day late with the payments, get a baseball bat, some 6 inch nails and..........

[pnustedt]

I am going to give her the cash but ask for something in writing.

My wife has done this in the past (at 5% pm) but I don't like the idea - her father was murdered by people who owed him money!

Anyway, she used to get the deeds to their house/property signed over to her as surety.

[Neeranam]

I forgot to say that my mother-in-law owns the kindergarten.

[Simbo]

I forgot to say that my mother-in-law owns the kindergarten.

<{POST_SNAPBACK}>

tell her to borrow it off the mother in law then. Why does it always have to be the farang who gets put into awkward situations like this. You have become an easy touch by lending money before. Neither a borrower or lender be, is the best policy here.

[DavieA]

DON'T DO IT!

[Aikido]

I agree with Simbo why are there so many stupid Farangs in Thailand would you just give money to anyone who asks you ? so why do you feel its your responsibilty to furnish a complete stranger with you hard earned cash.

furthermore by what your saying your going to give her the money anyway so why are you asking us ?

Edited August 24, 2005 by Aikido

[Davey]

I personally would loan her the money, but of course under conditions. I think the best advice was offered by sriracha john, keep a hold of something you know she will not want to lose, i.e. something which has a bit of value until the repayments are made. I would also be generally inquisitive as to what she intends to spend the money on.

The fact that you're asking on here though gives me the impression that you do not trust this person all too much

[ghengis]

My wife has lost a total of about 500,000b of money she lent to various "friends" and work colleagues. My advice - forget it unless you are happy for the money never to be repaid.

[bkk_mike]

I've lent money to relatives (i.e. brother-in-law, sister-in-law, but it's either been a small amount - i.e. 5,000 baht to buy a new water pump, or have had collateral (i.e. watch/jewellery), which they got back when I got repaid (and I did get repaid).

Non-relatives - I don't think I'd do it... After all, why are they coming to you rather than going to the bank. (It's not like Thais have the same problems borrowing money that farangs have.)

[Ice Maiden]

I'd say no. And if she is going to make things harder for your daughter then what kind of teacher is she? A bad one for sure. Who wants a bad teacher for your child? And will it stop at just 20,000 baht. You don't have to keep lending money to a teacher just to confirm your daughter will be okay at school.

I's say no and if she made things harder I'd tell your mother-in-law and if nothing changes, change schools. Simple as.

[OldAsiaHand]

For what it's worth, I endorse the clear consensus here: say no.

I know of no case in which a foreigner has been squeezed like this and has ever seen a baht again. However bad it may be on your daughter's circumstances now, consider how much worse it will be when you have to decide whether to write off the 'loan' or try to collect it the Thai way (i.e. by threatening the debtor physically until they come up with at least some of it).

Moreover, when you say no, I suggest you say it politely, but very firmly indeed. If you don't close the door permanently now, you will almost certainly just get another request sometime in the future.

[davethailand]

Nooooooo

[frequentatore]

A Neighbor... People talk. You will be viewed as a money lender in your neighborhood.

[mpdkorat]

A Neighbor... People talk. You will be viewed as a money lender in your neighborhood.

<{POST_SNAPBACK}>

I would not lend it. It is not worth the hassle.

[Neeranam]

I have drawn up my loan conditions and the repayment details, with a higher % age if any month is missed.

I doubt very much if I will hear any more on the matter.

This has been the case for other people who have asked for money for various enterprising business ideas, fish farm and the like.

The last one was the old fish farm story and when I asked for a written report on the first year projected profits and a detailed repayment plan, of course I never heard anything else.

She could ask my mother-in-law, but must have thought that the "farang" would just say, "sure, no problem and take your time repaying me". She surely wouldn't try to rip me off, as she would be out of a job if she did. I guess she is scared of the MIL, which I don't blame her for being!

As someone said, it ain't worth the hassle, unless I made some money off it. Better getting 5% a month than 1% a year in the bank.

[britmaveric]

Don't do it - chances of seeing dosh again are rather small. If she defaults how to you intend to get the dosh back?

[opothai]

Don't do it - chances of seeing dosh again are rather small. If she defaults how to you intend to get the dosh back?

<{POST_SNAPBACK}>

correct britmaveric.

something to take into consideration, taxin has made it illegal for black money lenders, if she defaults and you hassle her for money and she goes to the police YOU are in deep sh+t

ask around the local area and see how many defaulters their have been over the last 2 years and how many money lenders have lost vast amounts.

[BambinA]

It's hard situation , coz "kreng Jai" word เกรงใจ .. but if you do it one time, it will not stop..it will happend again and again

IMHO, lend is the "origin" of break down of freindship ... many people who were friends before ..after MONEY stuff ..the end of story finish as "no more friend" anymore

If i was you ,I 'd not give her.

anyhow , it depends on you too...may i ask you that 20,000Bht is much for you? if its not that much ..its ok to buy somebody's heart ...can you accept it if you lost that money? ( if she does not paid you back )

anyhow if you want to give her for lend , you'd tell her it must be the fisrt and last time for lend ..

Bambi

[mrbojangles]

It's hard situation , coz "kreng Jai" word เกรงใจ  .. but if  you do it one  time, it will  not stop..it will happend again and again

IMHO,  lend is  the  "origin" of  break down of freindship ... many people who were friends before ..after MONEY stuff ..the  end of story finish as "no more friend" anymore

Good advise Bambi, have you thought about becoming an "Agony Aunt"

[Fast Eddie]

It seems as if she is approaching you rather than your mother in law or a Thai money lender because she sees you as an easier touch. That doesn't sound like a good situation if you want the money back. Unless she provides you with some sort of security then don't do it.

[Ice Maiden]

I'd also request what your money is going to be spent on. If it's just for an extra piece of gold for the teacher then I wouldn't but if the teacher is needing the money for more serious reasons then I'd maybe consider it. But then again whos to know what she spends your money on? And why didn't she at least have the manners to ask you about the money?

[dereklev]

It's hard situation , coz "kreng Jai" word เกรงใจ  .. but if  you do it one  time, it will  not stop..it will happend again and again

IMHO,  lend is  the  "origin" of  break down of freindship ... many people who were friends before ..after MONEY stuff ..the  end of story finish as "no more friend" anymore

Good advise Bambi, have you thought about becoming an "Agony Aunt"

She already is to 20,000+ TV members! !

[MikeRay]

I always ask myself in Thailand: would I do that at home?

Very easy way to get by

[Nam Kao]

Writing a note (IOU) is worthless in Thailand

Get something material instead.

Me i would not do it, just say you dont have it. Give her a reverse-buffalo story.

Its fun but make sure you keep a straight face, i started laughing one time

and had to fake i was choking. They wanted to take me to the Dr.

Edited August 24, 2005 by Nam Kao

[BambinA]

Good advise Bambi, have you thought about becoming an "Agony Aunt"   

<{POST_SNAPBACK}>

She already is to 20,000+ TV members! !

<{POST_SNAPBACK}>

lol ..my life still a mess i dont dare to be "Agony Aunt"

you guys need Auntie Sophie ,

[loong]

I did lend money to the Brother-in-law one time. 30,000 Baht.

I won't go into the reasons, but it was against my better judgement.

I was paid back, and before it was due.

This is a VERY rare thing.

If a genuine reason for borrowing the money, then maybe you should consider it.................\then say NO!

A teacher should be able to borrow money from the bank.

Tell her your name is not Tanakan.

The biggest problem is if you actually asked for the money back. The borrower will often get angry and will bad mouth you all around the community.

My Lady was married before and her husband wouldn't pay anything to support her or their kids. He was, however able to lend 10,000 Baht to someone in the village. Made him look big I suppose. He then told my Lady that if she could get the money she could keep it.

She managed to get little bits at a time, and was still owed when I went to the village. She sent the kids to this persons shop to get some sweets and knock it off the balance,

The next thing, I hear that this person is spreading it around that I am "Living on my Lady's ex-husbands money"

I think that she had managed to get a total of about 700 Baht out of this person. I was living well wasn't I? Pissed me off, I can tell you. Luckily, it was not believed.

So here, I didn't actually lend money, but I still got bad-mouthed.

I have a rule not to lend money. I break it now and then, but not lightly.

It's a good rule

[aughie]

Loan sharks loan at high interest rates because of the risk of not getting repaid. Two payments at 20% and they almost have half back. She has her family and alliances to borrow from let her do it that way. Or why can't she take an "advance" on her salary from your MILs school? That way it is all legal, eh?

If you loan the money get collateral worth well more than the loan. You don't want to be the one taking the knick when you sell her gold at a shop.

edited for spelling

Edited August 24, 2005 by aughie