A loan shark is an individual or entity that offers loans at extremely high interest rates, often illegally. These lenders typically target people who may not qualify for traditional loans from banks or credit unions, exploiting their financial desperation. Loan sharks often use aggressive tactics to collect debts, which can lead to intimidation and violence. Borrowers who engage with loan sharks may find themselves trapped in a cycle of debt, as the high interest can make it difficult to repay the original loan. This practice is illegal in many places, and authorities often work to combat the activities of loan sharks to protect vulnerable consumers.