When a friend borrows money from you and you don't want to, consider the following ways to respond:
Be honest and direct about yourself: You can be honest and tell them that your current financial situation is not enough to borrow. Name your actual situation, such as that you may be paying for other expenses, or that your budget is already quite tight.
Guide them to other solutions: You can give other advice to friends, such as asking them to seek help from other friends or family members, or to take out a loan from a bank or apply for a credit card with the appropriate amount.
Point out your attitude toward money: You can express your prudence about borrowing and emphasize that you don't want to create financial disputes or cause unnecessary stress in friendships. You can tell them that you're more inclined to be a friend than to be conflicted over money.
Remind them of the position of understanding: You can remind your friend to understand your decision and emphasize that it will not affect your friendship. There should be room for mutual understanding and respect between friends, including understanding of money issues.
Give other ways you can help: If you're willing to help a friend, but not by borrowing money, consider offering other forms of help, such as offering a job job, providing resources, or bringing them along to find a solution to a problem.
Whatever your response, make sure to be honest and respectful, and be proactive in protecting your relationship.