There are private loans, same as private mortgage brokers/loans.
But do you really want to play in that area, since you will have to have a system to ensure they pay/hunt them down/bring them to court if they do not pay?
It would simply be taxed as interest income (same as salary) - Though I'd be leery to get into this because I doubt that the 10% will remain in place after taking into account all the extra time/work to react with non-paying individuals.
Yes, you are right. That's probably why the companies providing private loans do it at such high interest rates, they need that system to hunt people or funds to bring them in court.
On the other hand though, they usually accept anyone for those loans, no credit score investigation, so they have to ask for more because they expect problems. Taking time to find someone so you can trust might be an interesting option..
Anyways, thinking about it, I don't think the extra 3-4% over expected yearly rate of return on ETF's (6-7%) is worth the risks..
