One of your old friends wants to borrow ₹ 20,000 from you, you will

The correct choice is: tell him to return the money before a stipulated time but give him money.

Helping an old friend in need is right, and agreeing a repayment date keeps the arrangement clear and protects the friendship.

Refusing outright, avoiding him, or criticising his finances to others is unfriendly.

Hence the best response is ‘tell him to return the money before a stipulated time but give him money.’