Startup Idea : Community-based peer-to-peer lending application

I want to create a peer-to-peer lending service that will help small communities (friends, neighbours, colleagues) share small amounts of money among themselves in case of a need. Each user can participate in an already existing community if its members trust him and allow her/him to join. After that she/he can make a request to borrow money through the application and each member of the community will lend a certain amount of money at a small interest depending on how much it is possible. The borrower will start returning the loan in small amounts automatically each week and month depending on her/his preferences. The members of the community will use their PayPal accounts or other online payment systems and the application will decide automatically how to transfer the money with less taxes.