Loan sharks are illegal lenders who offer loans at extremely high interest rates, often to people who are unable to obtain credit from legitimate sources such as banks or credit unions. They often target people who are in financial distress or have poor credit, and they use threats and intimidation to collect payment.
Loan sharks operate outside the law and do not follow regulations that govern legitimate lenders. They may not disclose the terms of the loan clearly, and they may charge hidden fees and penalties. They may also use violent tactics, such as threats or physical harm, to collect payment.
It's important to avoid borrowing from loan sharks, as their loans are often designed to trap borrowers in a cycle of debt that is difficult to escape. Instead, consider borrowing from legitimate sources, such as banks, credit unions, or online lenders, and be sure to carefully read and understand the terms of the loan before signing any documents.
