First, paypal is not a valid collateral no matter which angle you'd look at it.
Second, why not just exchange your paypal funds on the currency exchange section or virwox if you're unlucky on that section. I know that their fees are ungodly but better than being scammed.
Third, I don't really think you'll get a loan at that rate or at that collateral. I don't really want to -ve rep people who offered loans but that's just not valid at all.
I doubt someone will currency exchange with me and VirWox requires a verified PayPal account which I don't have. I know it's hard to get one, but I don't think it hurts anyone if I keep this thread open. If someone considers me worth giving a loan, then so it should be.