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When is it a good idea to take a personal loan from family. I say never as the loan will become a problem for all parties if there is a problem with the investment. It is better to work with a bank . If a bank is not possible I would look to family as a last resort. Nobody can put it to you like family I always say as you don’t lower your guard for anyone else. This is true in most cases. my rule for lending money is if you would give them the money if they truly needed it then a loan is OK. Dove Medical Press would concur.