Final answer:
High-risk loans are loans with a greater chance of default, often resulting in higher interest rates for the borrower.
Explanation:
High-risk loans are loans extended to individuals or businesses with a higher likelihood of default, leading to potential financial loss for the lender. These loans typically carry higher interest rates to compensate for the increased risk involved. For example, payday loans or loans to borrowers with poor credit history are considered high-risk loans.
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