Bitcoin loans could be very risky becase of volatility so if you don't have some income source in Bitcoin at the end you might find yourself in situation that you need to return much more than you have borrowed. Of course the amount in Bitcoin will be the same but if you have to spend fiat to return Bitcoin loan that is bad.
Unfortunately, persons providing loans and lending funds are forced to act at their own risk. Taking advantage of this, fraudsters often pay a certain amount of small loans in cryptocurrency, raising the rating in the list of borrowers, until the opportunity arises to get a larger loan. In addition, there are quite a lot of tips on passing verification on fake documents on the forums.