What term refers to imposing unfair loan terms on borrowers?

The term that refers to imposing unfair loan terms on borrowers is "predatory lending." This specific practice often involves lenders exploiting borrowers, typically those with limited financial knowledge or poor credit histories, by providing loans with excessively high interest rates, hidden fees, and unfavorable terms. Predatory lending often targets vulnerable populations, leading to cycles of debt and financial distress.

In contrast, high-interest lending can refer to any loan with a high-interest rate, which does not necessarily imply exploitation, as it can occur in legitimate lending contexts. Subprime lending pertains to loans offered to individuals with poor credit histories, who may be charged higher rates due to their risk profile, but this does not inherently indicate predatory practices. Unsecured loans are those that do not require collateral and can come with various terms; their classification does not relate specifically to unfair practices that characterize predatory lending.