Using Royal Bank of Canada (RBC) For Friends and Family Loans Effectively

The Royal Bank has been the first to respond from the various banks who have been emailed with regards to automating repayments of friends and family loans. The reason for this, is once you have made a loan and repayment schedule with www.kasu.ca or www.documentyourloan.com, you will have to start paying back a loan at a certain time.

The best way to pay back any loan is like the best way for saving money, you automate it. Most people don’t even think of this, to be honest they rarely think of documenting the loans either. The reality is the effort it takes really teaches people the value of making payments on loans and sticking to a deal. If you are going to lend money to friends or family you should document the loan and get a payment schedule in place and automate it.

How does it work with RBC?

If you don’t bank with RBC but your family member does, the family member could send you email money transfers, this could be set-up through RBC Online Banking fairly quick and seamless, and can be done automatically every month… HOW COOL IS THAT?

Step One: Sit down with a family member; build a loan online using www.kasu.ca

Step Two: Build a payment plan, and then login the friend or family members RBC account and automate the payment to come out at the month you are to begin, and then program it to come out every month as set-out in the payment plan!

A two step process to setting up a loan and automating it.

All online, all manageable, no rocket science. RBC would get preference for friends and family I lend money to. The payment gets sent through email to me, and I could open the message and deposit the funds at any Canadian Bank. This is a great way for friends and family to lend money and then get paid back… with interest as discussed in the agreement.

I could imagine as a family member, you would feel happy to actually get paid back money you lent, and as someone receiving a loan it feels good to pay family and friends back.  

If you don’t want to use email banking payments, then RBC would be happy to set you up with an account in your friend or family location. If you explain the purpose of the account, they might make a better deal on interest and options due to trying to keep your money in their bank that is being paid in and build value for you are a customer. They would just set-up a monthly auto-transfer from the family member’s account, of course after the would have signed an agreement to do so, and it would go directly into your RBC account. Of course your family member would need to initiate this process at any RBC Branch, the forms are there to sign, they suggest just setting up an appointment.

Thank you RBC for this great explanation of how we can use RBC to repay loans or get paid back loans from Friends and Family!

Build a loan with www.kasu.ca and then get paid back with Royal Bank of Canada (RBC) online email transfers or auto-transfers today!