This might be the right place to ask: Can I simply lend money on my own? setup my own site. People request for loan and I choose whom to lend money to. Kinda m

This might be the right place to ask: Can I simply lend money on my own? setup my own site. People request for loan and I choose whom to lend money to. Kinda micro financing. How easy it is to do that? I want to do something like $1000 @ a flat 5-10% p.a What are the risks? Is defaulting a big issue?