The solution to both loan situations (and debt problems in general that would risk making BI/GMI inadequate) is to fix bankruptcy laws to the extent that they don't currently provide an adequate out for them. To the extent that basic income or GMI "looks different" to existing bankruptcy laws than welfare benefits, its probably an essential compoment of any such plan to work that out.

> There are all kinds of corner cases which the current system handles.

Poor people not being able to afford adequate food during an economic downturn -- or even an economic boom -- on their own (including with whatever government assistance is provided) isn't, however, one of them. During good economic times, some of that gap is covered by private charities (especially for the poor in relatively affluent areas), but (1) that goes away during economic downturns, and (2) that's not something that BI/GMI replaces, anyway.

Sure, lets question if alternatives to the status quo do what we want, but lets also not pretend the status quo does things that it doesn't.