Advice on giving a loan

Our helper, who has been working for us for 12 months, has asked us to give her a loan. We gave our helper a loan of a few thousand HKD when she first arrived and started working for us, and she has now asked to "renew" it. She has said that it is to send home as work needs to be done to the family home. We have been deducting the last loan from her monthly salary and it will be repaid in full in July.


My issue with the request is (mainly) that we paid for 2 flights for her and a family member only a few months ago and we also lent her money for another flight only a week ago. At no point did she mention that she needed money for ohr things or for us to put the money towards that. The amount of the loan is not much and will be repaid ove the net year but I think that we have to draw the line somewhere. My partner is very much against giving another loan for that reason. Then again, I feel that we may be being a bit harsh if she really needs the money. Any advice would be appreciated. Thanks.

"Then again, I feel that we may be being a bit harsh if she really needs the money."


are you nuts? you are already veeeery generous and she seems to test your boundaries more and more. it's late but better stop it now

If your name is Rockefeller, by all means !! you seem to have been more than generous, with flights etc and previous loans,her requests will not stop unless you say no firmly. She is taking the Mick majorly.

Possibly! Or just a mug...but I want to give her the benefit of the doubt and it's not a bad thing to help someone out is it? I don't mean to be difficult and I am grateful for your view but I do think saying no is harsh where she may go to some dodgy loan shark to get the loan and end up in a worse situation that can be avoided. As I said, my partner thinks we should draw a line now and says this is not our problem?

It is not a bad thing to help someone out but be very wary. I would indeed draw the line.


Never lend more than you can walk away completely. Never lend more than a month of her salary.

This is really a bad idea.

She is a adult and an employee and should be responsible for her own money management.

If she was living in her family home and not working for you, the same problem would have come up with her home - repairs or whatever it is, and she would have dealt with it. Why now should she coming running to you for money?

You are opening yourselves up to a boat load of grief - just do a search on loans and see the many, many employers who have had problems with loans not being repaid.

How about a compromise. You say her current loan ends in July. Well I certainly would not lend her any money until that one is repaid. Once she has done that you can lend her again.


Personally I wouldn't lend her any more. What we need to realize is that whilst what they earn seems buttons to us, she's sending home more than a professional person earns every month. I used to work with a 5-Star hotel in Manila and the average salary was USD100 a month and out of that an employee had to their own taxes and expenses. Is her family cannot manage this amount of money every month then there is a problem. Frankly, asking for money to do up the house is a common thing to ask for so make sure it is. Really if she wants to do something to her house she should really be saving up for it. Spending money you haven't got is no good in any walk of life.


I am a bit touchy about money and maids. I've never had a maid directly ask me for a loan because I said upfront and in writing that they wouldn't get it. My current maid has worked as a maid for 15 years and she does not have a cent to her name nor any property/ assets or family that have benefitted via education etc. The 15 years of salary has been blown on trivialities. She often asks for me money and I do give her advances, but never a loan. Recently some Uncle (who I never heard of before) passed away and she had to send money home for his funeral. She hinted at me to give it to her and I hinted back that I wouldn't and she borrowed a lot of money off her friends. She sent it home, her relatives had a whip round in her village and paid for his funeral and they kept and spent the money she sent over. Now she's in debt and that's her problem. That may seem really heartless to you but seriously if I had a maid that saved every cent, bought a house, set up family members in their own business and sent relatives to school and she needed a bit of a hand to do something back home I'd be the first person to help her. The part-timer I had before was like this and I helped her out a lot. In fact after she had sent money home it was her birthday and CNY and I gave her some money and she blew it all on a watch and clothes!


Back to the point. I would sit down and tell your maid she needs to budget better and I think you should tell her that you are happy to loan her but not 2 loans at once and a max of $X.

Angsana, I agree with you. While helper salaries are low compared to employer salaries, helpers do make enough to support their families. Our helper supports her family, has a house and even sends her kids to private school.


Look at it this way. If you had unexpected expenses and you had unwisely not saved up money for a rainy day, would you go to your employer and ask for money? And do you think the employer would lend you that money? I think not.


If a helper is not responsible about her finances, a loan will not make a difference either way.

Smithdon, as others have said you have been more than generous already. She's not even entitled to the flights that you gave her (yes, I know they were a gift) and you gave her "a few thousand" when she started twelve months ago (so she must be making minimal repayments to you if that is not paid off until July) and yet she still cannot manage her finances.

Your partner is correct, unless you really want to be a one person charity!

As axpatguy says, whatever you decide to do, don't lend more than you are prepared to walk away from. What happens if she leaves next month, or in the summer, for an unexpected trip and doesn't come back? It happens to people.

Good luck with your decision. You have had lots of advice (as you requested) all pretty much in the same line.