If you want a loan repaying then you can’t decide you’ll only accept cash ?

She did you a favour in loaning the money so I would put some effort into trying to understand her reasons and seeing if there is a way to arrange the repayments that works for you both.

Clearly a 6 hour round trip every month isn't reasonable.
Neither is writing off the loan.

How about a revolut or similar card in your name. You send her the card. When she confirms she has it, you load it with £250 which she can withdraw as cash. Repeat until the loan is repaid. Then cancel the card.
Of if it is linked to her wanting to see you then arranging a visit to pay off in full.

Tell them that you're not willing to withdraw large amounts of cash because that might look suspicious on your bank statement.

I like the idea of sending them a pre-paid debit card. This won't appear on any bank account they have.

Otherwise just tell them this wasn't agreed upon the loan, and if they transfer the money back into your account, you'll see it as a gift.

send it signed for recorded delivery

They want cash because they don't want transactions recorded for whatever issues they have in their business. You need to have a good chat with them.

Pretty much that^^

unless you don't mind going up to see them, then I'd offer to take the full repayment up in cash at the end of the period.

have you asked them why, especially given they transferred it to you?

it it a power thing to have you traipsing there once a month.

Have you actually asked your sister why, @Shouldbeeasy ?

It'll be a benefits thing.

If you give cash make sure you get a receipt.

If you go in two weeks time you can take Novembers payment and Decembers and drop off a Christmas present for your sister so that’s everything covered.

When you see her explain that you won’t be able to afford to travel again and invite her to yours end of January for January and februarys payments.

if you agreed to this and they helped you when you were desperate you have to do it on their terms, however bizarre.

Are you or her with an abusive partner, it might be her way to know you are ok?

Mad controlling move. Save up the £250pm and give it to them in cash next time you are visiting that area anyway (even if that is more than 4 months away). You never agreed to their requirement to be repaid in cash so the agreement to repay monthly is just as disposable.

Surely it would cost about £150 each time to make the journey. No way is that reasonable

The prepaid card is a great idea.

Are they in receipt of benefits and concerned that this will look like income to the snooping eyes of the DWP with new powers of bank surveillance?

I bet it has to be benefit related, she likely doesn't want anyone seeing £250 a month dropping into her account and it being seen as earnings.

I find it hard to believe it's just that she wants to see you, otherwise surely she would have just said so and surely she would appreciate asking someone to do 4 x 6 hour round trips in 4 months is utter madness.

All the cash in one go in 4 months or...do you have any family near her that you trust? you could transfer it to them and ask them to withdraw it and take it to her.

Make sure you record handing over the cash somehow when the time comes, signed receipt, video proof etc.

re benefits - if she had it in the first place and then wants cash for pyts its to avoid it being seen and counted as income rather than savings where it currently is. Yes they DO do that

Was is your relationship with your sister like?

Does she have a spouse or someone that she wants to hide the fact that you are repaying the money from? Maybe she plans to keep it as a runaway fund?

Either way it is crazy to expect you to drive that way.

The prepaid card might work. You could get one in your name and put the first batch of money on it and send it onto your sister. Have the card frozen until your sister gets it and then unfreeze it and give her the pin. Then you can top it up each time you are due to make a payment and she can take the cash out of the ATM.

If it was me, I’d go once at the end, if I could afford it. It’s unreasonable to add in extra conditions after you’ve agreed the loan - but presumably it would be nice to see her. If not, then send it as cash in the post as small regular amounts, or transfer it to someone local who could take it to her.

That's the weirdest power play strings with money I ever saw. Bravo

That's fine. Take out the money, take a photo and send them the photo. Tell them they're welcome to come and get it or you'll add to it every month and wait until you see them next.

Either they’re trying to control you into visiting them or they’re trying to avoid the transfer of money into their account for some reason. Or they’re trying to make it difficult so you don’t ask them again.

This is what I would say.

Lots of great advice here - if they try to accuse you of withholding the money emphasise the point that the money is available, you just can't agree to travelling several times to them with it but they can have the agreed amount today by bank transfer.

Without knowing the people involved this definitely sounds like a power / control thing. Understand that it's family & you may want to remain on good terms with them but they don't get to treat you like a puppet.

I’m guessing it’s an older sister. Is she worried about you for some reason? Maybe she couldn’t really afford it and is concealing it for some reason, or maybe she’d just like to see you?

Hi, OP -

What do you think of the possibility raised by PP that this is the lender’s way of getting you to visit? There is an element of pathos in that scenario . Especially if we are talking about your parents.

If you can’t do it, can you invite them to come to you monthly to collect the money?

Leaving the possible element of lonliness, however badly expressed, aside, I agree it is a crazy demand you are under no obligation to fulfil if it was not part of the original agreement. But if the lender is worried about something you might be able to ease their mind if you probe gently. Or just give them cash at the end of the loan term, earlier if you can.

If it was transferred to you by bank transfer then say you need to repay in the same way so that there is a record of repayment else she could say you did not repay.

Pay the money onto a prepaid debit card and send them the card.

Is she on benefits?

I think I'd just continue to use bank transfer, since they've given you no explanation (which could be reasonable) and are refusing to compromise. I know it was good of them to give you the loan, but you are repaying as originally agreed.

I think also, as others have hinted, they may want you to visit once a month or something.

Tax shouldn't come into it, and I can't see how it would affect benefits if they had it in the first place to give you!