Is there a coin that exists that does this, or at least any papers discussing how it could be carried out in a manner that minimizes or totally makes loss/fraud ? I've seen that crypto-currencies do not seem to have a proper means of paying back coins. Is there possibly ways to solve that fundamental issue, ie someone take a loan and runs off ?
There are many projects which offer lending platform. Some of examples are ETHLend, Fintrux or MoneyToken (its advisor is Roger Ver - the creator of Bitcoin Cash). On this platform you can lend or borrow and you will be always safe 
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