@lnk-fr
Was it made in the course of your business even if you are not a professional lender? For example, are you a real estate agent and you made the loan to help someone buy a house? Or, are you a contractor who made a home equity loan to help someone afford a big remodeling job? Then you made the loan in the course of your business (even though you are not a professional lender). The interest is business income, must be reported on schedule C or your other business tax return, and you must issue a 1098.
However, just because you own a business does not mean the loan was made in the course of doing business. If you own a dry cleaning store and you made a personal loan to a family member, then the loan was not made in the course of doing business, the loan was not a business activity. The interest is personal income, not business income. It is reported as personal income on form 1040 schedule B, and you do not issue a 1098.
You said this is a self-financed personal loan to a family member. So it's not a loan made by your business. Unless you are changing your story.
