How would you go about doing this? As an example, if you loaned someone 167 monero to buy a car and expect them to pay you back in 7 years like a bank does you would be requesting 167xmr*6.02% (to counter xmr inflation) for a total of 177.053xmr. 177.053xmr/84 (months in 7 years) would be 2.107xmr a month. At the moment that is fine, but if the usd price of monero rises and the borrower is being paid in usd then they are going to default and you will loose the xmr. The only way I could see to counteract this would be to lower the Monero payments per month, but then that would take even longer to be repaid.
I do not believe we have the price stability to be useful in lending applications, but if I were to do it, I’d be sure to take possession of collateral enough to completely repay the balance of 177 Monero. Otherwise, you’re just asking to be taken for the fool. Signing over the title to their car might serve as collateral, where you hold a paper title that’s he’s physically signed over to you, then you just don’t register it in your name, so the DMV still thinks the car is his. If he breaks the loan contract, you register the car in your name and have it repossessed legally. Still, I’d only do that if you know he can’t move away easily. Interesting application, though, I’d like to hear more real world applications like this.