Yes it does take 2 to tango. But many loans are given between elites and even between banks or banks and governments, and are essentially favors, or bailouts, or even gray area financial crimes (there is a well documented case where IIRC a British bank had a solvency crisis, and they gave a loan to some Saudi’s, who then bought some newly created stocks that that same bank had issued. It is as illegal as it sounds but never was prosecuted).

But to be clear it’s not just the interest that is “generated money.” The principle itself is money created out of nothing. This was sort of proven empirically by economist Richard Werner around the 2000’s IIRC, and then officials started to admit that this is indeed how it works. There is a video from the Bundesbank (Germany) admitting this. They say it’s well-regulated but it is not really; it is basically what drives boom-bust cycles. Banks start lending more and more which pumps up the money supply, until the bubble bursts because the debt is worthless (cannot be collected). Then the government usually bails them out and doesn’t prosecute and the cycle repeats.

Anyways look into ”split circuit monetary system” as a search term. Many people understand this as fractional reserve banking but it is actually worse, since the banks don’t even check their reserve requirement when giving a loan. They literally just add a number to the bank account of the person taking a loan.

Also can recommend the videos on John Titus’ youtube channel (called “Best Evidence”). His videos explain very well.