Loan sharking is the practice of lending money at extremely high interest rates, often without legal authorization. Loan sharks typically target individuals who may not qualify for traditional loans, exploiting their financial desperation. These lenders often use intimidation or threats to ensure repayment, creating a cycle of debt that can be difficult to escape. This illegal activity is prevalent in many areas and can lead to severe consequences for borrowers. Victims of loan sharking may face harassment, violence, or even legal troubles. Authorities often work to combat loan sharking, but it remains a significant issue in the realm of personal finance and consumer protection.