I may be wrong, but if I am not mistaken, Loquats naturally absorb their lower leaves and growths and use the energy to promote newer vertical growth. I was told if you pull that lower growth off, then you rob the tree of energy and slow or stunt its growth.
Watching my loquat, I have never pruned it once and it did precisely that. Grows taller, and for every 3 feet or so of vertical growth, it sacks a good 6-12" of growth from the root upward--both leaves and smaller branches.
At first i thought the tree was sick and losing leaves, but apparently its the natural process it uses to grow taller with evenly spaced branching and perfect trunk.