I asked a family member for a large loan and he was not able to give me one…

 

Question:

I asked my brother for a large loan and he was not able to give me one. However, he offered to give me from his bank (home equity) line of credit which charges interest of approximately 6%. I assured him that any interest charges he incurs I will repay so that he does not lose anything for giving me the loan. We want to ask if there is any problem with doing this?

The loan was for a little over a month and the repayment would be sent directly to his bank, not to him.

 

Answer: 

If the bank holds your brother accountable to pay, which in your case that’s what it sounds like, then it is a problem. Therefore, you can make up to pay the loan, but not the interest.

 

 

#2231