Yes you can borrow. A parent lends the money to 25 years old child to start a business. The rate of interest charged is higher than the rates generally offered by financial institutions, but the child cannot get funding from financial institutions due to the increased business risk involved in his newly opened business. Other lenders who gave the funding to him also have a similar rate of interest. Such an interest payment to parents from the child’s business is considered as an “excluded amount” from split income since it represents a reasonable return on the property contributed by parents.