Perhaps the credit industry would turn into more of a private investment.

Eg. Someone would loan you 10BTC to start your business, and instead of interest on that loan (because interest cannot exist in a bitcoin system - fractional reserve impossible as stated above) they'd agree on a % of your profit, up to 150% of their original investment. Or whatever.

I think this is what's happening already with crypto 2.0 decentralized exchanges and asset issuance.

Personal loans need to stop anyway. If people can't afford to buy cars then no one will buy them and someone will eventually come to market with a cheaper car which everyone can afford. The current credit system just insures money flows to the top even when the poorest can't realistically afford what the big companies are selling.