 Financial experts also say think through all the various scenarios that could arise after the loan is agreed to, like potentially causing damage to your relationship. Before you loan money, determine if it would put a strain on your finances. But if you have a sizable emergency fund, little or no debt, and a steady paycheck, making a loan might not be as difficult, depending on the size. It's also important to think about how likely you are to get the money back if the person is responsible about paying their bills and experiencing a one-time financial crisis.