How do I securely loan money to a friend?

I heard of someone, "Friend A", who loaned 2,000 to "Friend B", against her own savings account. *The Bank* gave the 2,000 Friend B and Friend B paid the Bank monthly loan payments. I'm assuming if Friend B defaulted, the Bank would take money from Friend A's savings. Has anyone heard of this type of loan? Know what it's called and who offers it?

How do I securely loan money to a friend?
It's called a Passbook Savings loan





Friend A needs to make sure that everything is in writing regarding the loan agreement with Friend B, and have it notarized.
Reply:It is a passbook savings loan. If you have 2000$ in the bank you can borrow against it, but not the full 2k. I think it is maxed at 80% ( so if you have 2k you could borrow 1600$) the % depends on the bank.





That does not make it secure for you however, it only means your friend will get the loan.





In the interum...what happens if you two have a parting of the ways? Or better yet...what if you tie up this money and something happens and you need it?





It is really nice to want to help friends, but a true friend wouldn't ask to borrow money. There must be a reason why they can't get their own loan in a conventional manner.....





Think about it
Reply:You don't, you will get burned and loose the friend. I know because It happened to me.
Reply:It's called a secure loan in which you have a co-signer.





Yes if the first person defaults the co-signer is on the hook for it.





The co-signer works in lew of collateral to the first person but the second person will require collateral.
Reply:NEVER LOAN MONEY TO FRIENDS OR RELATIVES..


The friendship is over and you will never get the money back...


Does it say BANK on your fore head--don't loan money.
Reply:Someone once said, it you loan a friend money and never see them again, was it worth the money?





Why does Friend B want the loan anyway? If they are trying to establish a credit history, I recommend learning to live on less than you make. In the long run, you have no choice. The sooner you learn, the easier it is.
Reply:never loan to friends, if you want to keep them as friends.

fruit gift baskets