yea it is better to borrow from friends without interest but the problem with most people is that they take those free loans from people they know for granted and might not even want to pay it back... so even friends don't want to lend them money anymore.

Bank loans is risky cos if you are not able to pay back, you could lose your collateral, well they make sure that your collateral cover what you owe in big loans so once they sell that, you don't owe them anymore.