Well assuming what you just said, is true, of course giving out loans is risky. It's like you gamble with your money in order to get 1 or 2% on top of it either in short or long terms and with the tendency of losing your money in case the guy who got the loan, doesn't return it. You could by some mining equipment's and contribute to the network as well and see the long term profit if you could manage and balance everything well.
The loan provider and the getting person can submit collateral and loan amount to escrow. Escrow can provide the bitcoin and if proper interest is not paid, this is safe if we want to be a loan provider. Just sure and safe business.
Majorly the loan seeker has to provide some sort of collateral which is worth almost the same of what is being taken as a loan. Yes escrow service can act as a crucial point also. But if both parties are from same city then it becomes easy because all the required documents etc can be taken and you can meet face to face and negotiate on terms and conditions.
None the less it is a risky business unless you are rich enough to even lose some of the loan given to parties.