1 loan-sharking | Definition of loan-sharking
Logo
Menu
dictionary thesaurus

loan-sharking

noun
loan-shark·​ing | \ ˈlōn-ˌshär-kiŋ How to pronounce loan-sharking (audio) \

Definition of loan-sharking

: the practice of lending money at exorbitant rates of interest

First Known Use of loan-sharking

1914, in the meaning defined above

Keep scrolling for more

Keep scrolling for more

More Definitions for loan-sharking

loan-sharking

noun

Financial Definition of loan-sharking

What It Is

Loan sharking refers to predatory lending practices by individuals or organizations that charge high interest rates.

How It Works

Loan sharking involves taking advantage of the borrower's weak credit or collateral condition. Typically, when a borrower has no option to secure a traditional bank loan, a loan shark does not usually require collateral for a loan, a bank account or even a written loan agreement. While this may sound good, at first, a loan shark will charge very high interest on the loan, which makes it very difficult to pay the loan back on time, or at all.

Why It Matters

Loan sharking is usually the province of organized crime or otherwise usurious lenders. At best, borrowing under such terms is not in a business's or individual's long term best interest.  At its worst, such borrowing can be dangerous.

Source: Investing Answers

WORD OF THE DAY

See Definitions and Examples

Get Word of the Day daily email!