Peer lending is a thing and if interest rates hit double digits it is something I will get into.
Look into the laws in your area. Last time I looked into personal lending I found that legally speaking I was only allowed to get 1% interest whereas a bank or what have you can get 15+% and compounding.
That's why some places have "payday" loans where they front the money then charge "fees" where none of the "fees" are tied to any form of "interest". This is the most predatory form of lending.
Of course there's always the back alley "get your knees knocked out" kind of lending but that's a messy business.
Ya need to stop by AAVE. :)
You can buy notes from peer to peer lending brokerages but I completely get your point. APR is a poor metric for small loans. $75 interest per month on $500 is like 180 APR but if the 500 allows someone to not become homeless, fix their car, etc etc it could be worth it to both parties. It definitely is a tricky business that has been overregulated but no one who makes those feel good financial regulations has ever had to sell a brand new videogame as used to get cash to get a cab to work, either.
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