This is an illegal business involved in the lending of money at extremely high interest rates. Most of the people involved in this business are believed to be crooks. Most of the money lent in the process usually finance such unproductive activities as consumption, gambling and betting and sometimes leisure. However, there is a need that drives the business as inevitably there are vulnerable groups in society.
Youth – the easiest group that lenders will stalk are youth who are in need of fast cash due to their unstable cash requirements. Most of lenders will advertise on social media where they can reach college students and offer short term solutions to their cash problems.
The elderly – they are also a prime target for money lenders since they often find themselves in emergency cash need especially due to ailments.
Low income earners. This is also an easy target since they often ran out of cash mainly in the middle of the month, hence can easily be tempted to borrow
Minorities- in society there are groups that have no access to financial institutions and these may include foreigners
Cash trapped persons – there are persons who for various reasons will find themselves deep in debt and will find it hard to approach banks.
Casual workers who often find themselves in and out of employment and still have to meet financial commitments
Those who unexpectedly lose their income and may have loans in banks
Those with huge hospital bills or persons who lose relatives and may need to raise burial expenses.
In cases of divorce where
Reasons we borrow from shark lenders
Instant approval – while conventional lenders such as banks will take ages to approve a loan, loans sharks will approve your loan instantly regardless of your financial status.
No credit check- loan sharks will not check your credit rating or your default record before approving your loan.
The lie of cheap loans by loan sharks often will lure customers.
Speed of access – with loan sharks you can access cash immediately your loan is approved.
Convenience – you can get a loan whenever you want it regardless of the day or time
No need on disclosure on your other financial commitments.
When we may have defaulted with banks and cannot obtain a regular loan.
When we have dormant accounts.
Loss of income of the borrower.
There is a general increase in problems associated with these loans particularly amongst the youth. Most of them are increasingly borrowing and spending the cash on gambling in the hope that they can make instant cash and repay. Others are simply spending on leisure; this has resulted in an increase in anti-social behavior including suicide.
In conclusion while it is true that one will find himself cash desperately in need of cash at some point.it would not be advisable to seek the services of a loan shark. This often will lead into a debt spiral, making things worse.it is also important to remember that you are operating outside the law.it is very unlikely that a shylock will solve your financial problems. The threats and harassment often associated with loan sharks may be too much to handle when in financial crisis it is advisable to seek proper help.
Loan sharks are out to make a quick kill. They will stop at nothing to make money; they owe no loyalty to anyone and like sharks they understand the vulnerability of their prey.
Payday loans :- odsp installment loans