Is there is limit on the amount of a loan that can be taken from friend?

Can a friend give an interest free loan?

For how long can a friend give loan?

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    Please edit and add country tag – Dheer Dec 30 '18 at 12:47

The conditions of any loan depend primarily on the one who owns the money, subject to laws of the land.

In Australia, so long as the money isn’t used for unlawful matters, we are permitted to do as we wish with our own money. I’d expect that to be true in most countries, though cross-border transfers may be subject to scrutiny, bureaucracy and/or controls.

Within those constraints, the limit you can borrow from your friend is set by your friend. Any interest rate, nil interest rate, or varying or variable interest rates would be a matter of agreement between you and your friend, as is the duration of the loan.

Having said that, however, when it comes to sizeable amounts, it is usually not advisable to borrow from friends or lend to friends. Any misunderstanding or default or urgent need for a return of funds can easily lead to losing the friendship.

If you are still going ahead with the loan, at least put all the conditions in writing. I am not a financial or legal advisor and the above isn’t financial or legal advice. You are advised to seek your own professional advice in any case, but especially because you did not specify the jurisdiction under which the hypothetical loan would be extended.

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