Taking out illegal online loans can be extremely risky and lead to serious financial and legal consequences, including:

• Predatory interest rates – Illegal lenders often charge excessively high interest rates, sometimes upwards of 700-900% APR or higher. This makes the loans almost impossible to repay.
• Hidden fees – Illegal loans may come with all sorts of hidden origination fees, processing fees or penalties that greatly inflate the true cost. Read the fine print carefully.
• Aggressive collection tactics – Unscrupulous lenders may harass borrowers, family members, employers and friends to collect on debts, or even make threats of violence or criminal prosecution.
• Damage to credit score – If you fall behind on payments, the delinquency can severely lower your credit score or these lenders may not even report to credit bureaus at all.
• Lawsuits and wage garnishment – Lenders can sue if you default, then try to garnish your wages or put liens on your assets, with huge legal fees tacked on.
• Loss of collateral – If securing a loan with any collateral like a car title, you risk repossession.
• Identity theft – Providing personal information to illegal lenders puts you at risk for fraud and identity theft.
• Lack of consumer protections – Illegal loans often fall outside the oversight of consumer protection laws and regulators. You have little recourse if treated unfairly.

To avoid these dangers, only take loans from reputable sources that provide clear documentation, fair rates, and consumer protections. Get help if falling behind on predatory loans.