This is commonly referred to as a "predatory loan." Predatory loans are typically offered by lenders who take advantage of individuals who may not have access to traditional loans or credit due to a lack of credit history or low credit scores. The high-interest rates and fees associated with predatory loans can trap borrowers into a cycle of debt and financial hardship. It is important to carefully review the terms and conditions of any loan before accepting it to ensure that it is a responsible and appropriate choice for your financial situation.
