Alternatives to Loan Sharks

Anyone who offers money outside of the traditional financial institutions and charges exorbitant interest rates that may climb beyond the level of legally permitted rates are referred to as “loan sharks.”


There is a lot of confusion that surrounds the term “loan sharks”, as in today’s popular mind it is often related to organized crime and is thought of as any gangster who may even resort to physical brutality threats if you fail to repay the debt or loan shark money. While there are loan sharks that fit the above statement, not all of them can be categorized in a similar bracket. In fact, the foremost loan sharks were never linked to any criminal activities. This phrase was previously used for chattel mortgage and salary lenders who existed during the end of twentieth century.

These creditors used to charge interest rates of around 20% and offered small loan amounts. Being interest-only, many of these deals required a lump sum payment in order to retire your principal amount completely. So, sometimes even the short-term loans dragged on for years.

Loan sharks proliferated soon in huge cities, where people often fall short of cash as their expenses overreached their income. Office clerks, factory hands, and government employees were the most common customers of these sharks. During the initial phase of the 20th century, an estimated one in every five U.S. urban households borrowed from loan sharks.

Nowadays, it is easy to trace loan sharks online and even though you might find a legal loan shark that does not resort to any physical brutality threats, they still charge extremely high interest rates. So, you can indeed save a lot of money by avoiding such a situation. Hence, in case you can wait a little, it is better to search for a few alternatives instead of finding a loan shark straightaway. Given below are a few alternatives you may consider:

  1. Credit Unions – Groups of people form cooperatives where they use a “pool savings” method to issue loans to members whenever required. Usually, people of the same community join this group and follow a certain set of rules about who all are permitted to join the group and others. Credit unions also offer basic financial assistance and tips for better budgeting. So, here you can get easy and short-term loans at reasonable interest rates.
  2. Municipal banks/Council banks – Put into effect by government, these banks especially focus on providing financial assistance to people with low incomes. As these people are unable to qualify through general loan requirements, these banks extend loan money to these people at very cheap rates of interest.
  3. Doorstep lending – This is another good alternative to loan shark money. While interest rates can be high in doorstep lending as well, anyone with low income and bad credit rating can qualify for loans this way. You would say it is same as loan sharks as well. Isn’t it? Well, not really. This is a completely legal method of lending money and is best for anyone who does not wish to take any risk by falling prey to illegal loan sharks. The loan amount starts from £100. The repayment needs to be done every week as an agent gets in touch. Lenderscompared.org.uk is the site you may check to know several doorstep lending deals.
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17 Responses to Alternatives to Loan Sharks

  1. Sal teodoro says:

    Need smal loan $10,000 willing to make monthly or weekly payments..have poor credit..please help

  2. cle says:

    i need 2500 to save my home i have a good job and can make payments on time please help

  3. Cynthia says:

    NEED $20,000 TO BE REPAID IN FULL WITH INTEREST IN 90 DAYS. NAME YOUR INTEREST RATE…..I just retired after 25 years in law enforcement. I have $455,000 in a low risk investment plan that will be available to me 11/1/2010 to use as “collateral” and to repay the loan in full. However, due to unforeseen circumstances, today my bank account is in the negative $250. I need $20,000 immediately to get caught up on my bills and pay everything that will be due between now and November first when I will have access to the retirement account. I can provide proof of the funds and availability date. I do not have any cash on hand for up front fees but am willing to pay whatever interest charges or fees would apply when I paY back the loan amount. I am eligible to take my first distribution 11/1/2010 and it takes approximately 3-4 days to get the money wired to my account. Please only contact me if you are able to meet the terms specified in this posting.

  4. stephanie says:

    i have had a very ruff pregnancy and could not work. we have fallen behind and are having a hard time getting caught up. i need 10,000.00 and will pay monthly at whatever rate……..please help!

  5. mlouise says says:

    please help- in need of $325,000 to pay off credit card debt, student loans and personal loan. Can make payments in the amount of $1500 over a 25 year period. Credit scores low but income okay.

  6. Kurt says:

    We have some credit card debt we need to pay off, we have a HOME that we built to resell and planned to sell it to pay off said CC debt,.. I own the house free and clear but my credit rating is bad because we have fallen behind in CC payments, SO we can make large payments, we are both working.

  7. mya says:

    Getting a divore need 10,000 to pay off debit it will free me to make large enough payments back so its paaid off within an year. Help me please

  8. Kevin says:

    I need to business debt consolidate so that I can keep our family owned business going. Looking to borrow $125K at 20% interest with 24 month payback at $6400 monthly payments. Need to do ASAP.

  9. Leroy says:

    Need 2000 to keep my car.if anyone can help it would be greatly appreciated.

  10. michael says:

    in desperate need of 7500.00 by 12/8/2010 by 10am if anyone can help terms and conditions are not to important right now just need the money fast

  11. CG says:

    In desperate need of a loan of at least $1,000 in order to pay some bills.

  12. Chris says:

    Looking to start new business and will use the funds for first transaction. This is a real estate business. I need 30k as the loan amount and will pay 350 back over the first four weeks, increasing to 1250 per week after. Looking to pay the loan amount back, plus an additional 30k over the next year. Would be willing to pay back an additional 30k after the year is complete, if 30k is not enough interest. I need to move quickly, customer base already established.

  13. Jason says:

    I am on the verge of being evicted…..I just received what would be considered a dream job, but my salary does not kick in until 90 days. Commision til then. My son is Type 1 Diabetic, so obviously for all the obvious reasons being evicted would be bad. My future earnings look great…I have made a lot of money as Realtor in the past, and an Investment Broker before that. Lately, had some bad things go against me, and just prayerfully in need of a break.

  14. Gary McCarthy says:

    I want to borrow 2500.00 to 3500.00 dollars for a maximum of 30 days.
    I will have the money to pay back the loan in less than 30 days and there have some unforeseen medical issues with my wife.
    I do not want to go to the bank, I have done the pay day loan thing and relatives are not willing to help.
    I am willing to pay back double the amount borrowed if need be, though for 30 days that is a bit steep.
    We need this immediately.
    Only serious inquiries, if you are an internet scammer do not even think about it.
    Thank You,
    Southern Ca.

  15. Dale says:

    I am in need of $7,600.00 for between 45 to 60 days only! Willing to negotiate for the right person. this is a serious ad. I honestly will pay back in no more than 60 days, possibly 45 days. 401K coming near Turkey day! Any takers? You will not be disappointed.

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