Illegal interest practices that stand out today in my opinion still exist in a privately owned business and are so cruel with unilateral policies.
In some countries, it is illegal to loan money to people if they are not registered as a finance entity but in most countries individual loan is completely legal and the government may set up certain frameworks for this but we all know, no loanshark is going to follow what the law says and they are capable of facing legal consequences that is why they are lending money to poor in the first place.
You are right, because poor people if they borrow from financial institutions will be rejected raw because they do not have a company that is included in the criteria or financial background to prepare if the installments that must be paid are delayed, the convenience provided by loan sharks so that lower-class people dare to take loans even though the interest is unreasonable and may be tens of times more than asngsurang to banks with the same fiat ceiling amount. Sadly, the state allows it as long as it is not included in the crime (verbal violence and physical violence) to mushroom for years until now. And there are still quite a number of loan sharks who consider this a job and are still practiced as an effective livelihood. Indeed, if it is on time I think there are no other fines and focus on interest alone which is not reasonable, even so there may be many who are helped by the existence of these loan sharks if they are smooth and reapply. I think this is a threat but for some people it may be a source of help in a very easy downturn. And I choose not to approach loan sharks whatever the problem and need.
You and me may have the privilege to get loan from bank institutions because we may have business/job or any security that we are capable of pay back the mortgage on time or even if its delayed we can be forced to pay with high-interest rates and also which will be effected in the credit scores but one who has good creditd score and multiple revenue sources can use the loan to pool some money which is not in their hand and keep them in circulation to make more money.
Talking about the lower class people their only source is go to the loan shark or else they will be forced to be in their shit life, so even with high interest rate it is risk for both ends but one who utilize the loan money into something positive can payback the debt and get a better life which isn't too easy but there is no better way for them in this economic structure.
