“”even if interest payments were not received - need to be declared on his personal taxes.””
If the borrower didn’t claim any interest as a deduction, why would anything have to be declared by the maker of the loan?
In other words - an interest free loan. WHY would anything be necessary - income or expense on anyone’s part? Who would care?
Just a quick internet search:
“The IRS mandates that any loan between family members be made with a signed written agreement, a fixed repayment schedule, and a minimum interest rate. (The IRS publishes Applicable Federal Rates (AFRs) monthly.)”
https://www.schwab.com/learn/story/family-loans-should-you-lend-it-or-give-it-away