what will the bank be reporting to the iRS? If it's not making the loan, the funds are coming from you correct?, then the repayments including interest would be from your relative, so I don't see a reason for it to issue you a 1099-INT
however, what it may be reporting is the transfer of money.
in any case $50K would not be subject to gift reporting if it is to be repaid. short-term afr is the minimum interest rate for short-term loan. you can always charge a higher rate.
