Earning money is not a charity, you got that wrong.
It would be a charity if he doesn't charge a % fee.
Seeing the amount of customers and the amount of defaults I think it's still a good business. Of course when he loses a high amount it looks really bad but that's the risk of giving these loans unfortunately.
Maybe there should be a harder limit for amounts and not as high as 1000$.
Or if you want to give 1k loan then it should only go to very reputable people in the forum. There are so many Legendary and Hero accounts here, not everybody should have the same limits since some accounts just spam this forum for signature gains ( like most of the accounts promoting stake for example).
It's a charity if the loan was defaulted which is going to be the case in this one. It definitely is a good business and I think that @shasan should be raising his interest rates given that his service is a non-collateral loan which in my opinion is justified. If there's a tally or some spreadsheet to see the money that @shasan has earned and lost in doing this loans, I think that's when we can say that @shasan's loan service is a success but for now, I would take your word with a grain of salt and say that @shasan should either stop doing non-collateral loans or have some adjustments for his requirements to get a loan. Your second statement can't be the absolute truth because there are still scums out there that doesn't care about their reputation and will default a loan even if their rank is so Hero Member and above, being a scum loan defaulter don't really have limits and it can be anyone on any rank.