Is it permissible to entrust money with a friend for him to lend it to people?

Lending to people is a form of goodness, and a goodly loan (qard hasan) that carries no interest is an act of closeness to Allah and obedience for the lender, if he intends thereby the Face of Allah. As for a loan with interest, it is a grave sin and usury (riba), and "Allah has cursed the one who consumes usury and the one who feeds it."