>where they are against the law
Is there a reason for that? To stop loan sharks, for example? (Which is a highly valid reason).
I don't think GP was saying that the law had no reason for existing, just that its existence had an unfortunate unanticipated effect on microloans.
(If you wanted to outlaw loan sharking, you pass something like the Fair Debt Collection Practices Act, not an "only banks can loan money" law)
We cannot ignore the ways in which government is broken.