Usurious loans are unethical and disgusting. If people aren’t capable of effective money management, that just reinforces that the justifications used by that agency are bunk.
Practically all owns today are usurious, since interest is involved. If you look at the old testament and the Quran, this was prohibited for a reason, and we see the effects today very clearly.
Living in 2019, I’m not referring to the medieval context of the word.
This is a dismissive non-argument. Interest (usury) is a disastrous and parasitic practice that inherently feeds off of the needy. We already see the effects of that today.
Why would anyone lend money without interest?
One reason is purely out of goodwill, to help someone out. Another way is to invest your money (which is basically what a lot of people end up doing today), this can be viewed as a form of lending, but with the possibility of making profit. So if someone wants to take a loan to start a business for example, you lend them money to own a portion of it, and hopefully get something in return. Basically what VCs do nowadays.
Should probably add: why would anyone lend money without interest to someone they don’t know?
Right, lending money without interest is pretty common within families and trusted friendships. But obviously the amount of credit available loan free from friends or family is going to be significantly less than what a financial institution would give you.
Because there’s a very substantial system of laws and governance enforcing the terms of the loan.
But if there’s no money to be made, why would a business bother?
Well, if you can basically create money out of thin air, then the interest rate for loaning it out ought to be pretty low.
Especially when you will be bailed out by the government.