Loans aren't fraud, unless ppl don't pay back their loan or lenders seize collateral illegally.

Loans actually increase the spending power of the population, which improves the economy. The problem is that if ppl borrow too much they could default which hurts them and the economy. But if we didn't have lending we wouldn't have the great products and services that exist today, because nearly all of them required a businessman to take out a loan to develop.