1. Two poor people seeking a loan from a potential lender, one of them is a relative but lives in another city, while the other is not his relative but does live in his city, then the relative comes first, as he takes precedence over the neighbor. However, if the relative can easily secure a loan from others, while the non-relative cannot secure the loan elsewhere, then the neighbor from the same city comes before the relative.
2. As explained, when there are limited funds available to lend, a relative takes precedence over a non-relative and closer relatives come before more distant ones. A “relative” for this purpose is defined as it is in the laws of charity. The order therefore is this: (1) a person’s father or mother; (2) one’s children; (3) brothers of the same father; (4) brothers from the same mother; then (5) all other relatives.

E. The order of preference also applies to loans that will be extended to people who are not poor [such as they are borrowing for their business]. Therefore if two wealthy people are asking the person for a loan, and one is a relative while the other is not, then he must lend to his relative.