Sia la, if someone anyhow use NRIC to take loan from loanshark also dangerous man. I think it's more likely LS2 trying to help LS1, since they have many different "stalls" that they can loan money out, plus can use different numbers to contact debtors. I've never had LS asking me is it I want to loan when I am the one providing the NRIC because, why would they care? Got NRIC, got bank account, if their background check is OK, they just loan out. Anything whack the house.
After you repay finish or if you're unable to pay anymore, then you or your NOK will start receiving advertisement from them. This is call fishing. You will have one or two idiots fall prey. This is call law of averages and the cycle continues