LOAN SHARK Meaning and
Definition
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A loan shark, often referred to as a predatory lender, is an individual or organization that offers loans to borrowers in need, but at an exorbitant and exploitative interest rate. Unlike traditional lending institutions, such as banks or credit unions, loan sharks typically operate outside of legal and regulated parameters, disregarding established borrowing laws or licensing requirements. Their primary goal is to profit excessively by preying on vulnerable individuals who cannot obtain loans through conventional means due to poor credit, financial instability, or the urgent need for immediate cash.
These unscrupulous lenders often employ aggressive tactics to coerce borrowers into repaying the loan, frequently resorting to intimidation, threats, or even violence. Their extortionate interest rates can reach astronomical levels, making it almost impossible for borrowers to repay the loan in a timely manner, leading to a cycle of perpetual borrowing and debt.
The term "loan shark" metaphorically alludes to a predatory aquatic creature that preys on weaker prey for its own survival. It conveys the ruthless, predatory nature of these illegal lenders who exploit the vulnerabilities of those in desperate circumstances, leaving them in a state of financial distress and often escalating their overall debt burden. The activities of loan sharks have significant societal implications, as they contribute to the perpetuation of poverty and financial instability for vulnerable individuals and communities.
Common Misspellings for LOAN SHARK
- koan shark
- poan shark
- ooan shark
- lian shark
- lkan shark
- llan shark
- lpan shark
- l0an shark
- l9an shark
- lozn shark
- losn shark
- lown shark
- loqn shark
- loab shark
- loam shark
- loaj shark
- loah shark
- loan ahark
- loan sharik
Etymology of LOAN SHARK
The term "loan shark" is believed to have originated in the United States in the early 1900s. It combines the words "loan", referring to borrowing money, and "shark", which alludes to predatory behavior. In this context, "shark" is used metaphorically to describe lenders who engage in illicit and exploitative lending practices, charging exorbitant interest rates. The term "loan shark" gained popularity as a representation of these illegal moneylenders who often targeted vulnerable individuals, creating a negative and dangerous association.
Similar spelling words for LOAN SHARK
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