Take fractional reserve out of banking, and force banks to lend entirely on capital... do you know what you get? We do have a system like that in the US. 10 Steem to the first one that can figure out what it is.
Which reminds me, no one ever made a guess on this.
I would have accepted payday loan stores like the money store or loansharks. Partial credit for venture capitalists, since theyre investments, not really loans.
Point being that yes, there are people that will take their very own money out of their pocket or bank account and do what banks won't -- lend it to you directly. But they're taking way more risk and, as a result, they charge 40,000% apr and have terrible terms and possibly cave your head in with a crowbar if you miss a payment.