Usury refers to the act of charging excessively high interest rates on loans, often beyond the legally allowed limit set by a government. This practice is considered unethical or exploitative as it burdens borrowers with high repayment amounts, leading to financial strain or debt traps. Usury laws are established to protect consumers from unfair lending practices by setting caps on how much interest can be charged. Violating these laws can result in penalties for lenders, including fines and other legal consequences.