Recognize the runaround and put a stop to it as soon as possible.

The human condition is one of flux. One of the nice things about lending to a friend is that, hopefully, you can be a little more flexible than a big, faceless corporation. However, if your friend is taking advantage of your good nature, you will not be helping him or your friendship by letting your friend slide on their repayment.
John borrows $150 from you and promises to pay it back in a week. At the end of the week, he lets you know he will need another week because had other expenses. You agree to let him have another week. A week later, he tells you his pay was reduced and he can't pay yet. Meanwhile, John has plenty of money for food, dinner and entertainment. He isn't taking the debt seriously, and is just running you around, and the sooner you recognize it, the sooner you can deal with it.
If John is just a kind of strange, you may be best off to consider that money gone and just resume your friendship, deciding never to "loan" John any money in the future.
If you really must have that money back, you may need to face the fact that you and John are going to have a serious fight, or maybe aren't going to be friends any more once you have your money back. Think carefully about how you want to handle this situation.

Usury Rate

What Does Usury Rate Mean?
A rate of interest that is usually considerably above current market rates. Usury rates are often charged by unsecured lenders on loans. These rates can be illegal in some countries and situations because they often take advantage of unsuspecting individuals.

Decide if the person is trustworthy or not

If your borrower is somewhat flaky, then it’s a good idea to lend only a small amount of money or none at all. (There's nothing to say you cannot give some money to this friend, with no expectation of repayment. You can call it a loan if you like, but you can't really get mad if your friend doesn't pay you back).
If the person is trustworthy, then you should take into consideration how much money is requested. You might be willing to lend an amount less than asked for, and if this is the case, say so. Example: "I can't lend you $200, but how about $100?"
Under all circumstances, make sure that you get your loan understanding in writing. Use a loan contract or promissory note to avoid misunderstandings.

Be Your Own Loan Agent

One2One Lending helps individuals formalize their lending agreements between the borrower and Lender.
One2One’s Agreement Builder™ guides you through creating a promissory note that is legally binding. Customers are guided through a process that helps them input loan terms (including interest rates and payment terms). Before purchasing the promissory note the customer can preview the repayment schedule which is built upon the chosen interest rate, loan term, and payment amount.
One2One also offers a Loan Forms marketplace. Customers can download a do-it-yourself promissory note that the customer can fill in the blank in a Word Document.

How we support Individual

One2One Lending provides an automated Agreement Builder™ that assists in the development of a promissory note helping the customer determine the terms and conditions associated with a loan such as interest rate, security, and payment terms. One2One Lending also provides a forms Marketplace where customers can download a do-it-yourself promissory note in word document format.
Learn more about our services at One2OneLending.com.