How is this idea of 'Lending Tree' for small loans?

We are planning to develop a 'Lending Tree' kind of system at SmallLoans.com where lenders can compete and approve instant 'small loans' to those who need urgent cash for reasonable interest rates..Otherwise, the interest rates are heavy in this segment and there is no place on the internet where lenders can compete for the benefit of the small borrowers.. Any ideas from the experts if this business idea will work?

Clarification added January 25, 2008:

Thanks for the repsonse..but Prosper is not the answer for someone looking for INSTANT small loan to be paid in few hours like a payday loan..

thanks,

Clarification added January 28, 2008:

I am talking about loans ranging from $200-$5,000 (Payday loans etc..) just to clarify. Prosper is good but not suitable for instant cash needs..This system is aimed at probviding a platform where payday loan companies will compete each other and approve loans and wire the cash in minutes just like they do on their respective sites.. Since borrowers are charged 300-500% per annum (no kidding!) in this sector, anything less is a blessing for the consuemer in my opinion. Anyone agrees?

thanks,
Sai.

posted January 25, 2008 in Small Business | Closed