Bank lending to business is predicted to increase by just 2.1% in 2020, representing the smallest increase since 2015 (£9.5bn) Consumer credit growth of 3.8% this year expected to be the slowest for six years and is predicted to cool further. Mortgage lending set to grow 3.7% both this year and 2020, significantly down on the growth rates seen. A family member who voluntarily forgives a loan over $14,000 is considered to be gifting the value of the loan to the recipient. There are no tax consequences to the borrower of the money if the lender (family member) forgives the loan. However, if the lender was charging interest and the borrower defaulted on the loan then the borrower will experience tax. As long as you charge at least the AFR on a loan to a family member, you don’t have to worry about any weird federal tax complications. Example: You make a five-year term loan to your beloved. Since insurance follows the car, most drivers whom you lend the car to are covered. In your policy’s omnibus clause, it states that any driver who is a family member living in the same house, including children away at school, are covered as long as.