Family and bank loan comparison
Borrowing From Family vs a Bank Loan in the US (2026)
Compare borrowing from family with a bank loan in the United States. Explore the comparison tool and talk through the terms before you decide.
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The tool below provides the comparison information from Chipkie’s shared data source. Read the displayed dates, sources and notes alongside the figures.
| Borrowing $10,000.00 over 24 months | Rate | Interest paid |
|---|---|---|
| From a bank | 11.86% | $1,281.95 |
| From family, at the IRS minimum rate | 4.35% | $459.41 |
| Stays in the family | $822.54 |
US family loans have a floor: charge less than the applicable federal rate and the difference is treated as imputed interest. This uses the current mid-term AFR, which is the lowest rate a loan of this length can carry without that consequence.
Bank rate: Finance rate on personal loans at commercial banks, 24-month loan — Federal Reserve (FRED series TERMCBPER24NS) — Finance rate on personal loans at commercial banks, 24-month loan — Federal Reserve (FRED series TERMCBPER24NS) (as at 2026-05-01)
Illustration only, on a $10,000.00 loan repaid monthly over 24 months. What a bank offers depends on your circumstances, and what family or friends agree is entirely up to you. Chipkie documents loans people make to each other — it is not a lender and provides no credit.
Compare the whole arrangement
Look at the repayment schedule, any fees, flexibility and what happens if a payment is missed. Do not assume that one option is cheaper or more suitable for everyone.
Give both people room to decide
Talk through what each person is comfortable with. Write down the loan amount, repayment schedule and agreed terms, so you both know what to expect.
Discuss what you will do if circumstances change. A clear plan gives you a shared starting point for the conversation.
Keep your loan plans together
Plan your repayments · Browse all loan tools
This tool provides general information, not legal, tax or financial advice. For guidance on your own circumstances, speak with a qualified professional.