Nah, high interest rates became legit when Jacob Fugger urged the Catholic Church to change its stance.
No, the process was more drawn out and complex than that.
Fugger is actually the perfect example of the kind of person I am talking about though. Born into one of the wealthiest families in Germany, he became even more obscenely wealthy by giving out loans which he used to leverage ownership and gain power over other people's work until he owned so much that he was lending to the king, via which he gained political power, swung elections, and was eventually given lordship over dozens of villages. All through other people's labor - his "virtue" was solely the ownership of money.
Fugger's wealth and influence may have been partially responsible for the Fifth Lateran Council's failure to condemn interest, after previous counsels had. But the issue wasn't settled in 1517. As late as 1745, Pope Benedict XIV wrote the Papal Encyclical "Vix pervenit: On Usury and Other Dishonest Profit" which absolutely condemned usury, and the Holy Office of the Catholic Church declared that this encyclical applied to the entire Church in 1836. Less than 200 years ago, the church was still absolutely condemning it. Even in the 20th century you had secular, Muslim, and Christian economists who condemned interest not only as exploitative but as at the center of economic inequality, environmental destruction, and even war.
Interest rates match risk levels, so it makes sense.
And no, interest rates do not match risk levels, if they did then money would flow to and from lenders and lendees at an equal flow. But the system is designed so that MORE money flows to the lenders than will ever go to the lendees, that's why the rich continuously get richer. Even government-insured demand deposits and short-term risk-free government securities bear interest despite having no risk to them at all, in fact ALL new money that enters our system enters bearing interest, which is a profit premium absorbed into every other loan. Even if you account for inflation AND a risk premium AND the cost of making the loan, there is always an additional usurious component which ensures that wealth will concentrate into the hands of the wealthy.