Borrowing from family members and friends can be considered a personal loan.
Borrowing from family members and friends is typically considered an informal or personal loan. This type of loan is not usually regulated by formal lending institutions, such as banks or credit unions, and does not involve a written agreement or interest payments. Instead, the terms of the loan are typically worked out between the borrower and the lender on a more personal and flexible basis.
Borrowing from family members and friends is typically classified as a form of informal loan, often called a personal loan or a social loan. Unlike traditional loans from financial institutions such as banks, these types of loans are typically based on trust and personal relationships rather than formal contracts or agreements. As a result, the terms and conditions of these loans may vary widely and are often more flexible compared to loans obtained from traditional lenders.
