Don't assume loans are that simple. Everyone assumes they're that simple. They're deadly, it's the compound interest, the intrinsically runaway loan, the situation Hell is based on. It leads to gambling and prostitution for example. All sins.
I believe you. I mean I know you think you're making stupid-sounding shit up, but you are not. There are real loans like that. There's extra steps in between, the loan shark has game. But borrow $10 from the wrong guy and it will get worse. It can absolutely be that slippery.