... This is the scammer's gold mine :/ Good Luck.
That's what I thought, but for the little amount of money they could scam it's probably not worth ruining the account for. I'm sure lots of people will default on these loans though.
I don't think the OP's rates are excessive after all he is not accepting collateral and is no different to a payday lender who will inevitably get bitten a few times so needs to offset that with higher rates.
What bemuses me is why anyone would want/need to borrow 0.005 BTC that only around £1.33/$2.24 what are people going to do with that tiny amount of funds ?
Well they are excessive but I guess those are the terms if you want a collateral free loan, but the high interest just makes it less likely people will pay the money back, but I agree about the second part. I'm interested to see how successful this offer is though. Good luck, op.