The most important reason for asking for a promissory note is to preserve the relationship – not to test it. I you are uncomfortable asking for a note to be signed – imagine how uncomfortable you will be if you need to discuss a sensitive matter about the loan in the future, say a missed payment or a misunderstanding about the rate.
It is not wrong to ask for documentation between family and friends. In many ways it not only benefits the borrower and lender but also other family members who many have incorrect assumptions about the loan.
Disagreements are much less likely when the loan is in writing.
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