What Is A High Risk Loan? A high risk loan also known as a Payday Loan, is a short-term loan meant to carry the borrower for only a couple weeks or maybe a month. Regulation and legislation of these types of loans varies from community to community. To prevent usury (unreasonable and excessive rates of interest), some communities limit the Annual Percentage Rate (APR) that any lender, including payday lenders, can charge. Some communities outlaw payday lending entirely, and some have very few … [Read more...]