There are two parts to this answer:
1) The money supply is expanding and some of the new money goes towards interest.
2) Dollars can be used more than once, so even with hard money there’s no mechanical issue with being able to pay interest.
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With hard money, everything that is loaned was perviously earned. No one can loan anything they don't have. Fractional reserve is easily recognized as fraud.
If you loan money into existence & pull more out than you put in, you are profiting from nothing but a trick of political privilege. It is a net drain from productive people to parasites no matter how many times money changes hands.