Baiscally, these loans is just an instrument for speculating, they are indeed impractical from a consumer's point of view. DeFi is not a replacement for traditional finance, because it's strictly limited to dealing with blockchain assets. And you can't tokenize any sort of non-blockchain asset without having some trusted third party. So, DeFi is just a parallel, very limited finance in the world of crypto. People who are saying that it will replace traditional finance are either lying or they don't understand how either of those things work.