One thing that always baffles me that: Most banks charge about 15-27% on personal loans while they pay a minuscule 7-7.5%
These days, I am exploring the merits of creating a platform through which a person (esp. Indian citizens) can seek loan from their friends and family. This way the borrower can have access to cheaper credit, while the lender could either earn higher interest rate or get the satisfaction of helping a friend in need. (And being a friend indeed)
The features that I was seeking were:
1. Ability to connect to various social networking sites: Facebook, twitter, linkedin
2. Ability for an individual to bar certain individuals to know that they are in need of money.
3. Viral Marketing: A person can endorse his friend and spread the news of his requirement amongst his friend circle.
4. provision of anonymous lending (you can help your friend without him knowing that the money is from you)
5. Since charging interest might be awkward amongst friends, there would be a provision to donate interest to charity.
The first version of the website will be basically a forum where individuals can post their needs. They can subsequently contact each other and negotiate the terms and conditions of the loan. There would be no charge for such a service.
In the second version, we intend to add a few fee based services:
1. The borrowers would have a chance to get their documents verified, and deposit with us for safekeeping till the loan is not fully paid back. We are working with NSDL to incorporate hypothecation of shares and securities.
2. Lenders could use our bank accounts for transfer and collection of funds.
3. There would be a provision for an auction to determine the min. interest charged.
However I would really need your feedback (on firstname.lastname@example.org) about what features should/should not be there and how I can promote and popularize this initiative
Update: 11 Dec 2013: I have launched the beta version of the P2P crowd-funding website