Uganda Microcredit Foundation Ltd (UMF) is an indigenous Micro Finance Company that was incorporated and started operations in 2008 in Uganda.
The most prevalent answer by financial advisers is that a person should never loan money to a relative or a friend.
I have made loans to both family members and close friends, however I did it with no expectations of having it repaid. It really is a personal decision, with several things to consider, such as the needs or the person asking for the loan, their ability to pay it back, should you get the terms of repayment in writing, and so forth.
Also you might want to consider if you can afford to make the loan and the possibility you might “lose” your money? And then there is the not so small issue of what could happen to the relationship if the person does not repay you?
