if some one were to offer you a proposal for ROI of 20%, will you take it?

Tweet

I was looking at the some US site where you get to post the loan you are seeking and the rate that you are comfortable at returning the loan. Then other people who are looking at making a few dollars from their money will scroll thru the site and see if it is feasible to lend you the money. After both parties agree, the lender will lend the money to the borrower at the agreed rate. The borrower would have gotten the money he needed and returning at a comfortable rate. The lender will be earning interest on his money at a better rate than putting it in the bank! I find this site rather interesting... cos there are many stories of people who got themselves in bad credit and are trying to clear their debt. But with the interest on interest policies that banks has, it takes forever to clear them! So doing a debt consolidation with a fixed repayment rate would be better. But in some countries, the banks do not allow debt consolidation arrangements to be made between the bank and the customer! I was thinking, if some one were to post on the net that he needs a loan of ... say... $10k with a repayment rate of $250 a month for 4 years. This will work out to $250 x12 x4 = $12k! that is like a 20% returns in 4 years. If the borrower is willing to pay for the lawyer fees to make this loan legal with the necessary repayment terms and conditions, will you go for it? Will you take out the money to lend this person, with the assurance of the legal document to back you up?