In 2019, during a difficult career transition, I found myself in need of financial help. A good friend stepped up and lent me €5,000 without hesitation. This act of kindness helped me keep a roof over my head and get through a tough time. Over the years, he never asked for repayment, and life moved on. Now, in 2025, I am in a much better financial position and want to repay the loan with interest. But the question remains: could this gesture unintentionally offend him?
Finding the right repayment amount
I wanted to return the sum as if my friend had invested it in a stable financial instrument. After careful consideration and researching historical stock market returns, I settled on repaying €7,500—a 7% annual return over six years. This seemed like a fair balance: generous enough to express gratitude but not excessive to the point of making my friend uncomfortable.
Many commenters suggested looking at the S&P 500 as a benchmark. Others advised against giving too much, fearing my friend might refuse the extra amount. If that happens, I might have to negotiate with him to at least accept the adjusted amount for inflation.
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Avoiding potential offense
Some concerns were raised about whether my friend would feel insulted by the additional interest. However, I believe he would appreciate the thoughtfulness behind the calculation. He is financially savvy and manages a well-balanced investment portfolio.
As one commenter noted, loans between friends and family can sometimes cause bitterness, especially if repayment is delayed or never happens. Another commenter shared how a loan ruined his father’s relationship with his uncle, highlighting the importance of handling these situations delicately.
Beyond just money: A meaningful gesture
Simply repaying the money does not fully express my appreciation. Since my friend is well off and has everything he needs, a simple gift wouldn’t feel right. Taking him out to dinner wouldn’t work either—he would insist on paying. Instead, I plan to arrange an exciting experience, such as an adventurous event, where I can cover the cost in advance.
Community reactions and insights
The online community was overwhelmingly supportive. One user expressed gratitude, saying, “As someone who’s loaned out money to friends & family and has been burned, I just want to say—thank you for this!!!” Another shared a heartwarming story about giving money to his brother for college, only for his brother to return the favor years later when he faced financial struggles.
Some advised against loans entirely, believing that money should be given as a gift with no expectation of repayment to avoid potential conflicts. Others shared personal experiences of relationships being ruined over unpaid debts, reinforcing the importance of handling the situation with care.
