When people think that they have a lot of money, usually they tend to invest it. Investment somehow needs personal information and other support documents. Some people are bothered of that complicated way of investing money. They prefer investing money in their own way, which is loan. Giving loan is also a kind of investment way.
Those people tend to build a loan company and some of them give loan personally. The idea of those things is the same. They are giving loan to a borrower. They give the requirements for the borrowers to meet. Once both the lender and borrowers agree of the requirements, then the money is ready to be lent. The borrowers can do the installment along with the interest as set before.
The interest of loan is usually quite high. The high interest, of course, benefits the lenders because the higher the interest the more money can be gained by the lenders. This is a simple way to multiply your money in the name of investment. However, this will not be a good investment when the lender find some problems in the installment from the borrowers. Hence, lenders need to pay special attention before deciding to lend the money to a person.