It is generally advised not to lend money to friends because if the money is not paid back you end up losing your money and your friend. Despite this I recently loaned my friend $2,000 to help buy a truck he is going to use for business.
I think this loan is a good deal for both of us and I am not worried about if for a couple of reasons. One is that I have known my friend for 14 years and feel confident that he will repay me. He has helped me out on a smaller scale several times in the past. Another is that the terms of the loan were clearly stated and we both understand them exactly.
He offered to pay interest and I am charging interest on the loan. I am making more than I would at the bank and he is paying less than if he had taken a loan from a bank. He may not have even been able to get a loan from the bank due to his poor credit.