Would You Lend A Neighbour Money?

[Thaipwriter]

What would you do?

I would make like the guy in your avatar

[Davey]

What would you do?

<{POST_SNAPBACK}>

I would make like the guy in your avatar

<{POST_SNAPBACK}>

Best advice so far

[johng]

It's just like those anti drug adverts...

Just say NO....

If a bank won't lend the money then why should you ???

[nagasaki]

if you were in the west, would you lend your neighbour money, I am and i wouldn't

[Totster]

We lent money to a neighbour... not a large amount (but that's not the point), and was promised it back at the end of the month.. that was back in January, we still haven't got it back now...

Now when anybody in the village asks for a loan now they get told we can't lend any because the last person to borrow hasn't paid back yet...

totster

[chaiyapoon]

Many money borrowers suffer from amnesia soon after they get the money.Can loose a lot of 'friends' saying yes and even saying no.I use the reason Totster does for not lending anymore and it works well.Used to get asked a lot;now only people I trust (and thats not many!)stand a chance and that with collateral.Wouldn't lend to kids teacher unless they were family.

[SiamOne]

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.

<{POST_SNAPBACK}>

Yes, I agree, unless the money is for a medical emergency etc.

I find if you lend someone money, a neighbour, friend or whoever, the relationship changes between you, for the worse. It is just bad "karma" or something.

Also, as someone else has said, get some equivalent gold as colateral.

[Iain]

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.

<{POST_SNAPBACK}>

She doesn't have to pay you back, you have no power to control the situation, basicaly it is the job of the bank anyway.

[Totster]

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

Now that's just downright cheeky..

totster

[Jai Dee]

I once lent 15,000 baht to my missus' uncle... about 2 years ago actually. I agonised over doing it when I was first asked by my wife, but she assured me the money would be returned.

As an act of good faith (and as a test of honour) I lent the money.

It was returned in full a couple of months later, and I was both happy that it didn't disappear like you hear all the negative posters saying, but at the same time I felt guilty that I had doubted both my missus and her uncle at the time.

I have not been asked for money since.

If asked, I probably would... as I now trust them.

Just my two satang...

[TokyoT]

You are really looking at a two-headed monster here. One head is doubt that you will ever get paid back again. The second head is the line that will soon form outside your door once the rest of the village learns that The Bank of Farang has just started giving out loans at low rates.

My advise – do not loan her the money.

[Neeranam]

You are really looking at a two-headed monster here. One head is doubt that you will ever get paid back again. The second head is the line that will soon form outside your door once the rest of the village learns that The Bank of Farang has just started giving out loans at low rates.

I don't live in a village.

I guess the bigger question is whether it is moral or not to become a money-lender.

I know the mother in law does it. I wouldn't want to get on the wrong side of her and her heavies though

[RamdomChances]

I often lend money out, depending on wether 1. I've actually got it, 2. Who is it for, 3. Why they want it.

One of the most common times here is when they have to pay the Gov back. People borrow money from the Gov, they can use the money but it has to be returned 1 year later (really chep intrest ,if any). Once its all collected in they can then borrow again, usually about 2 weeks and around 10,000 to 20,000 bhat. I often lend money out to the family. Another reason here is harvest time to pay the labour they then pay you back when they have sold the crop.

I dont charge any intrest, as I dont really need that few % and never had colateral. If they had gold they may as well pron it for a few weeks anyway, its not expensive. The high interest rates quoted are for unsecured loans. I think gold here is about 3% a month if you borrow off it.

I've never had any problems but as they say here "up to you"

RC

[sriracha john]

I've never had any problems but as they say here "up to you"

RC

<{POST_SNAPBACK}>

Interesting and heartening experiences... highly reflective of the little niche of Heaven you've managed to carve out for yourself there, RC...

well done to you....

With others posting polar-opposite experiences/opinions, it seems to so indicative of one's chosen environment and personal philosophy whether their experiences are positive or negative ... on this topic as well as a whole host of others.

Goes to show the tremendous diversity of Thailand...

which is truly part of it's attraction...

[NextStationBangkok]

Let me tell my story & advice for you.

I talk some times with my appartment security, a old person stay in our appartment out house with his wife. He earns 6000 per month. Before my security had a job, his wife was running a resturent and she closed now and doing nothing. Just sleeping and moving around doing nothing.

I speak with him daily few words. He asked me Bt,1000 loan around 20th of a month and paid next month 1st. Next month he borrowed 15th itself around 1500 and paid me back on next 1st. Becuase i lend him some, he offered me a help saying he will drop my Bangkok Post at my door every morning, becuase i live in 4th floor. I was thinking of offering 100-to-150 Bhat a month for this job next month as a surprise salary. Last month he did not pay me 1500 finally. He promised this month. But he stopped dropping papers after 15 days, i dont mind becuase it is also good for me to run to get my papers, i can get some fresh air in the morning after get up. Let me check this month. It is not matter of 1500, i even dont mind if he cannot pay me. For me it is a matter of honesty of a person. I hope he will return soon.

When you lend some money to a Thai, first check weather he drinks too much and gamiling habits.

In your case 20000 is not a little money. To be nice with her, becuase she is working in your K.G. you can lend her only a month salary and deduct 1000 a month from salary directly. So you will not have a problem of asking her again until this loan finished. Please dont charge her an interest.

[pedro01]

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.

<{POST_SNAPBACK}>

Woaw - steady....

Your mother-in-law owns the school & you are worried you'll piss the school off if you don't lend a teacher 20K ???

Shouldn't your Thai family be protecting you from stuff like this ?

What are the possible upsides to this arrangement ? - There aren't any ! The BEST outcome from this deal is you get your cash back.

Stop being a mug - you'll make the rest of us look bad. I don't want teachers knocking my door asking me for money.

Tell her to get fcuked.

[pedro01]

One other thing - don't worry about the morality of charging 5% interest.

1 - 5% of 20K is bugger all & not worth the grief

2 - you won't get the 20K or the 5%

[Eric Davis]

Your mother-in-law owns the school & you are worried you'll piss the school off if you don't lend a teacher 20K ???

Who mentioned this?

[quadricorrelator]

It is difficult to give advice with any level of confidence because I don't know all the details. But, I will say this: I very very rarely ever lend money or offer charity. My gifts, donations, etc. go to those who I care deeply about. Giving charity to strangers is taking food out of the mouths of the people you do care about (even if those you care about are your offspring or wife whom you have yet to meet).

My reasoning is as follows:

1. Ninety percent of the time you will never see the borrowed money again. How did they get themselves in a position where they can't raise 20,000 baht?

2. I don't want to get involved with collateral or anything like that, it normally turns into a big mess. Are you really going to have the guts to keep the collateral when they don't pay up? And if you do keep the collateral, the relationship is most likely over anyway.

3. If you do lend money, it sets a precident for them to ask again in the future. Only next time they will ask for more.

4. If you lend money once, and you refuse a second time, then you will be demonized and labeled a cheap charlie, etc. It's best never to get started.

Based on my experience here in Thailand, I will say that it is almost never a good idea to lend money or give charity. It raises expectations and you will be asked again. If you don't give again, then you become the target of abuse. If you never gave in the first place, then no one bothers you too much. In summary, "The road to ###### is paved with good intentions".

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.

<{POST_SNAPBACK}>

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.

<{POST_SNAPBACK}>

[geronimo]

Nooooooo

<{POST_SNAPBACK}>

It's a big no no from me too!!!!!!!!!!

[Khun Larry]

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.

<{POST_SNAPBACK}>

Now that is the lowest, unethical thing I have seen on this board.

Bring it to the attention of the school administrator, or ask her to get their permission.

Damm sleazy and inconsiderate of the child.

[Jai Dee]

I've never had any problems but as they say here "up to you"

RC

Interesting and heartening experiences... highly reflective of the little niche of Heaven you've managed to carve out for yourself there, RC...

well done to you....

With others posting polar-opposite experiences/opinions, it seems to so indicative of one's chosen environment and personal philosophy whether their experiences are positive or negative ... on this topic as well as a whole host of others.

Goes to show the tremendous diversity of Thailand...

which is truly part of it's attraction...

Absolutely sriracha john.

Each to his own... and you choose your own path...

Som nam naa if you choose unwisely...

Edited August 25, 2005 by Jai Dee

[chechoie]

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

What would you do?

<{POST_SNAPBACK}>

Always a bugger,

lots of questions to ask yourself.

I would take this approach:

Don’t say no, say cannot.

Don’t say why you cannot, just shake your head, look all forlorn like, and say cannot.

Works for me, (Thai’s love a mystery).

P.S. I think, you know better than to ask this question anyway Neeraman.

How long have you been living in the Thai world?

[Totster]

I've never had any problems but as they say here "up to you"

RC

<{POST_SNAPBACK}>

Interesting and heartening experiences... highly reflective of the little niche of Heaven you've managed to carve out for yourself there, RC...

well done to you....

With others posting polar-opposite experiences/opinions, it seems to so indicative of one's chosen environment and personal philosophy whether their experiences are positive or negative ... on this topic as well as a whole host of others.

Goes to show the tremendous diversity of Thailand...

which is truly part of it's attraction...

<{POST_SNAPBACK}>

Absolutely sriracha john.

Each to his own... and you choose your own path...

Som nam naa if you choose unwisely...

<{POST_SNAPBACK}>

Just a few more points I'd like to make following the comments from JD,SRJ and RC...

The OP asked whether money should lent to a neighbour, and I replied about the problems we had had lending to a neighbour.

What I would like to say is that we regulary lend money to family members, it's not often that they ask, but when they do it's no problem. It has ALWAYS been returned by the time stated if not before, and I never worry about it, it doesn't even enter my head that they would not pay it back.

IMHO there is a difference between lending money to a neighbour and lending to a family member... well ... there is with my wifes family anyway..

totster

[RamdomChances]

All my neighbours are family

[raro]

try this....worked very well for me: A woman I know has monthly debts installments exceeding her salary. She approached me (through a Thai) to borrow her some money. Knowing her situation being ripped of by loan sharks, I offered her to buy back all her debts at once under the condition, that I get 5% per YEAR and a percentage of her salary gets transferred from her company directly to me as repayment - so she has no chance to spend that money before it reaches me.

Guess what, I never got a reply from her...

[PeaceBlondie]

You are not a bank, and you are not family. She should borrow from family or bank, and if they won't, you surely shouldn't.

In Mexico, one of the first phrases I learned to say was, "I am not a bank. I am not a banker. I don't do bank things."

[jaloochapurr]

I've never had any problems but as they say here "up to you"

RC

<{POST_SNAPBACK}>

Interesting and heartening experiences... highly reflective of the little niche of Heaven you've managed to carve out for yourself there, RC...

well done to you....

With others posting polar-opposite experiences/opinions, it seems to so indicative of one's chosen environment and personal philosophy whether their experiences are positive or negative ... on this topic as well as a whole host of others.

Goes to show the tremendous diversity of Thailand...

which is truly part of it's attraction...

<{POST_SNAPBACK}>

Absolutely sriracha john.

Each to his own... and you choose your own path...

Som nam naa if you choose unwisely...

<{POST_SNAPBACK}>

Just a few more points I'd like to make following the comments from JD,SRJ and RC...

The OP asked whether money should lent to a neighbour, and I replied about the problems we had had lending to a neighbour.

What I would like to say is that we regulary lend money to family members, it's not often that they ask, but when they do it's no problem. It has ALWAYS been returned by the time stated if not before, and I never worry about it, it doesn't even enter my head that they would not pay it back.

IMHO there is a difference between lending money to a neighbour and lending to a family member... well ... there is with my wifes family anyway..

totster

<{POST_SNAPBACK}>

Good for you Danny. I agree when have it I would lend it. I am facing something of the same thing when I return in september and will most likely never see the money i lent to someone before. We alaways give money to my wifes mother though even though she never ask.

[Maestro]

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

What would you do?

Tell her the truth, through your wife: your visa status does not permit you to lend money and you do not want to get into trouble with the Immigration Bureau.

How does that sound?

[mijan246]

A definate but polite NO.

I have been burnt (singed) my wife does not like to say No. Now I say No sorry we will not lend now due to a number of outstanding non performing loans.

Also you need to update on the local interest rates.

Small time money lenders 60% - and that is why once Thais borrow they have difficulty repayin - a lot of them stiil have the original amount borrowed ourstanding and pay the monthly interest quite often doing a bunk when it gets too much for them (mind wise).

Big time money lenders short term 200 to 300%

Once bitten twice shy.