Yes, in fact about $100k worth in order to learn about the very subject you're incorrectly making a snarky comment about! A down payment on a loan? That makes

Yes, in fact about $100k worth in order to learn about the very subject you're incorrectly making a snarky comment about! A down payment on a loan? That makes zero sense. I think you're talking about unsecured loans (i.e when there isn't an asset that can be repossessed if the debtor defaults). The fact that the loan is "unsecured" is precisely why the resulting interest rate will be higher. I am paying to borrow that money, and it's more expensive to borrow because of the increased risk assumed by the bank. However, fractional reserve banking is entirely functionally different.