This has potential for massive failure and massive success. If I had a decent sum of money stacked up some place I don't think it would be a bad investment to loan it out to somebody reputable who will pay it back but will give me say 5% extra after fronting the money. One could start small and if enough business picked up you could go larger or as has been suggested a group of people could pool a substantial amount of money lend it and then split the intrest profits amongst themselves. That kind of model would keep the fiscal impact on a single person small,it would give people access to large sums at more reasonable intrest rates and terms than a bank would give them.
But the downside for people defaulting on a loan or something I would imagine would be much higher at least in the early years of such a concept as people would likely think(wrongly) that since it's an individual it would be easier to worm out of their loan and it would be harder for an individual to soak up such an impact.
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