Treat a personal loan from a friend or family member like you would any other loan. You must be prepared to meet all of your obligations on time until the loan is paid in full. A private loan just means a loan from someone other than a bank or lending institution, and the agreement is drawn up between the two of you. The fact that you may know your lender/borrow well should not change the responsibilities associated with any loans. A loan agreement and repayment schedule should be drawn up to avoid any misunderstandings or conflict.