I'm well aware of the negatives as well...and I would've been one of the most fervent anti-personal loan people that exists... but in this case I know my friend very well, and I trust him. I rarely trust people... and in this case the trust is well deserved.
I just gotta say, as someone who highly values integrity I like that others still can recognize and value it too. I'm also super wary of loaning money (mostly because of the danger of changing relationships for the worse) but there are one or two people I would loan to because I know they would move heaven and earth to make sure I get paid back. They value their integrity the way I do mine and have demonstrated it consistently enough to earn my trust.
50k is way more than I would be comfortable risking (don't kid yourself, nothing is "risk free"...he could pass away, for example) but if it's not to you then I like that you're willing to do this. In an age of blowhards and scammers I like that a carefully built reputation of trustworthiness is still worth something.
Good point, I fully agree.
As to the risk of him passing we away, he has made me beneficiary of his life insurance for the amount of the loan as well, and it's also stipulated in the loan contract. He has assets so in the worst case it would be handled in the estate liquidation. I would add that the loss of a valuable friend like this would be 10000 times the blow of the loss of $50k. I'd rather lose $5 million than lose a close trusted friend like this to some unfortunate accident.
Nothing is risk free, not even leaving it in the bank, earning 0.01%. Even winning the lottery has a risk. :)