When dealing with a friend borrowing money, you do need to be careful in order to avoid hurt feelings or an unpleasant situation. Here are some tips to help you turn down a friend's request for a loan without hurting your feelings:

1. Show genuine concern: First, show that you care about your friend and let them know that you Care about how they feel. This helps bring each other closer.

2. Answer honestly: Tell your friend honestly why you can’t lend them money. It could be that you are short of money recently, or have other financial needs, etc. This way, your friends will understand your difficulties.

3. Provide alternatives: If possible, provide other forms of help, such as suggesting that they seek help from other friends or relatives, or apply for a loan from a bank or other formal financial institution. This way, your friend not only knows that you care about them, but that there are other ways to resolve the issue.

4. Maintain communication: After rejecting a friend, maintain communication with them and care about their situation. This shows that you are not alienating them by refusing to lend them money.

5. Stay Positive: Even if you decline the request to borrow money, try to stay positive and express your willingness to help in other ways.

In short, the key to saying no to a friend for borrowing money is honesty, care, and support. With proper communication and resolution, you can avoid hurt feelings while maintaining friendships.