Definition of Loan Shark
What does the term "loan shark" mean? What is the definition of the term loan shark?
Depending on where you live, there are probably laws in place that limit the amount of interest that can be charged on a loan.
For instance, a country may have a law that limits the amount of annual interest that can be paid on a loan to 60%.
A "loan shark" is somebody that lends out money at illegally high rates.
For instance, a "loan shark" may lend you $1,000, provided that you agree to repay $2,000 within 30 days. This would be an illegal loan due to the exorbitant interest rate.
A "loan shark" will often use intimidation and violence in order to collect their money.
People who borrow money from a loan shark are often in a bad spot financially, so loan sharks use these "collection methods" in order to collect on their loans.
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