They will work just as FIAT loans. There are many loans on this forum, just go to the lending section and see it for yourself. If you take a good collateral, you shouldn't have any problems if the loan defaults. As you can see, a common sense is the most important, if you are giving a FIAT loan or Crypto loan.
Lenders in lending board here are more willing to give out bitcoin loan, instead of fiat. They are here for bitcoin, nor for fiat.
Websites have been made for this purpose already.
Yes, like btcjam.com