People need loans (bank loans atm) to live. To buy a car, a house, school, etc. Our society only works with loans.
So, if bitcoin becomes HUGE, how will the bitcoin loans work?
There are already a lot of bitcoin loans. AVOID them at all costs. Sadly a lot of people default which means you do not get your money back.
And you have to go after them legally, and they might not even be in your country. Its just a hard time collecting if they default.
Lenders here tend to issue collateral loan. Once the loan is defaulted, at least the lenders could recover the loan through liquidate the collateral.