# Loan shark (gombeen-man, shylock)

- Canonical URL: https://www.gerhardmerk.de/loan-shark-gombeen-man-shylock
- Post ID: 591322
- Modified: 2023-07-25T21:02:20+00:00
- Language: en

## Definition

A derogatory term for a company that grants loans at very high interest rates to borrowers who can offer no or only insufficient collateral. However, because the loss rate for this group of customers, who are no longer served by the banks, is considerable, the interest rate must be set correspondingly high. In Germany, such companies also require a license and are subject to supervision by the Federal Financial Supervisory Authority. - In old documents, the loan shark is also called Karbatsch; presumably because he had careless defaulters karbatschen (= hit with the Karbatsche [strap whip, knout]). Of course, it is also often enough reported from earlier times how have-nots: Haves, day laborers [= unskilled workers, Lidl], servants, farmhands) and even paupers from the almhouse took a loan from the moneylender in the next town, played the big rich lord in the inn and frittered away the borrowed money (blued, wasted: frittered away). - It is wrong to equate the loan shark with the financial vulture, as is not infrequently done. On the supply side, the loan shark has clear, undisguised conditions for his business, whereas the financial vulture does not. On the demand side, the loan shark caters to financially unencumbered households and small-scale businessmen (unregistered traders). The financial vulture, on the other hand, has consistently money-hungry (profit-hungry) wealthier individuals as customers. - See agiotage, default-loss, default probability, danism, confiscation, financial vulture, fraudulent, money collection, money raider, harpax, carbatch, customer, lazy, avenging angel, subprime lending, sin money, overcharge, usury. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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