What type of loan is often characterized by deceptive practices targeted at vulnerable borrowers?

Predatory loans are specifically designed to exploit vulnerable borrowers, often through deceptive practices such as hidden fees, inflated interest rates, and terms that are difficult to manage. These loans are marketed primarily to individuals who may have limited access to traditional credit options, which makes them particularly susceptible to predatory lending tactics.

Unlike conventional loans, which adhere to standard lending practices, or government-backed loans, which provide protections and benefits to borrowers, predatory loans prioritize the lender's profit over the well-being of the borrower. Subprime loans, while also typically targeting individuals with poor credit histories, can sometimes offer transparent terms and are regulated more closely than predatory loans. Thus, it is the predatory loans that stand out for their intentional lack of transparency and exploitation of borrowers’ circumstances. This makes "predatory loans" the most accurate answer to the question regarding loans characterized by deceptive practices.