system
Given the following post, respond as if you're commenting on Reddit:
human
Why do banks give out zero interest or negative interest loans?

Or for example, a 1% interest loan in a market that has 2% inflation. Why pay someone to take your money?
gpt
Because losing $1 in real value for every $100 is better than losing $2. Banks also forecast in the long term- most loans mature well after a year, and the younger the loan the higher the interest (typically).

A hypothetical 30 year mortgage might have a negative return today at 1% interest, but if interest rates go lower it will reverse, and if they don't then the rates will be increased once the rate is changed if the loan has variable rates.