Someone buying a tractor on a loan doesn’t take away someone else’s ability to buy a tractor. We have no shortage of tractors. Practically all new tractors today are bought on a loan, by the way.

Imagine what would happen if loans on tractors would not be allowed. Then, someone who needs a tractor would need to rent it, instead of buying it. In that world, pretty much the same people who use tractors now would also use tractors. Tractors use would be similarly allocated as today. The main difference is that instead of a bank earning income by renting you money, it would earn income by renting you tractors. The ultimate outcome would be effectively the same.

Loans is just renting, but instead of renting physical objects, you rent money. If you object to renting money, all your objections should apply to renting physical things. Have you thought of that?