What would you do?

[EyeKhan]

That's an awful idea when dealing with friends/family.

It makes you look like a cheap, heartless bastard, even more so than just saying "no." For some reason, friends and family expect a ~0% interest rate on loaned money. (At least based on my experience and qualifiers like that there.)

I was very drunk when I wrote that. I would never loan money to family and nobody in my family would ever ask for a loan. We're that way.