Lynn Davies, 58, from Neath, was given a deal by Cardiff Crown Court judge Patrick Curran QC in October and given six months to repay the cash.
The court heard on Friday Davies had paid up before the deadline and his jail term was suspended for two years.
He charged victims £500 on top of every £1,000 borrowed and loaned £23,395 over seven years, pocketing £33,425.
Davies, who threatened his victims if they did not pay, was caught out after an anonymous tip-off to the Wales Illegal Money Leading Unit.
Davies previously said he did not have the funds to pay back his five victims but has since repaid the profit he made, which waa almost £10,000.
Prosecutor Timothy Evans told Cardiff Crown Court: "The money has been paid into a bank account. Where it has come from is a matter to him, but his victims have their money back."
Davies told one of his victims he would "smash her partner's head in" if she failed to meet his demands.
Father-of-one Davies, who lives in Melyn, previously pleaded guilty to two counts of unlicensed money lending.
Judge Patrick Curran QC said: "If the money was repaid, the court would consider suspending your sentence and I have been told that you have paid the money.
"The law is in place to protect the weak from people such as you.
"This sort of activity exploits the vulnerable and draws people deeper and deeper into debt."
A loan shark has taken a judge's offer to avoid an 18-month prison sentence by repaying his victims.