A Brief Look at the Origins of Lending
When trying to discover the origins of lending you might find yourself looking at a lot of unrelated information that doesn't really tell you what it is that you want to know.
The origins of lending go back to at least biblical times, with mentions of lending even being mentioned in certain places in the Bible. Even with modern banking and lending, the origins of lending can go back several hundred years? all the way to the Middle Ages and before.
The Middle Ages and the Renaissance are likely the best places to begin looking for information on this subject, as these times were when financial records were beginning to be kept in earnest and lending in its modern form was beginning to truly develop.
Lending in the early Middle Ages
If you look at the early Middle Ages to try to discover the origins of lending, you'll find that loans were often more or less one-sided and always afforded a large benefit to the lender.
Landowners and the wealthy would make loans to poorer individuals while charging high interest rates or making the borrower work to pay off the debt? in many cases, the lender would even increase the terms of the loan once is was nearly repaid so that the borrower would have to continue to make payments or work without pay for the lender.
If a borrower was unable to repay their loan they could even be thrown into a debtor's prison, held without fair trial until someone was able to pay off their debt or other arrangements for their release were made.
Lending during the Renaissance
During the Renaissance and late Middle Ages, the origins of lending began to take a turn more toward what lending is today. Individuals known as moneylenders would ply their trade in market squares and other business and merchant venues, setting up a bench known as a "banca" (from which we get the modern English word, "bank") on which they would conduct their transactions.
Several moneylenders might work in the same area, and the competition tended to reduce some of the extravagant interest rates that were created by landowners and other officials in previous centuries? this didn't, however, mean that the trade of the moneylender was completely fair or righteous.
The moneylenders would still strive to make as much of a profit as they could from borrowers, and might go so far as to falsify their records of payments and transactions so as to scam more money out of the less fortunate or uneducated.
Debtor's prisons were popular, and in some areas were very crowded with people who had barely been getting by in the outside world and had little hope of release.
Lending in the modern world
As time has progressed, so have the methods of making and receiving loans? it's easy to see how far things have come since the early origins of lending.
The predecessors of modern banks developed in conjunction with the Industrial Revolution, and in the decades and centuries that followed most major countries worldwide have abolished most types of unfair lending as well as debtor's prisons.
Interest rates at banks, finance companies, and online lenders are controlled by both local and national factors, and modern lenders strive to provide a valuable service to both the public and businesses by providing reasonable interest rates and definite terms.
Lending has grown from a practice of a few individuals looking for profits to a major industry on which the basis of the modern world is built? an example of how from simple origins can come great things.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
About The Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
What are Home Improvement Loans?
Home improvement loans are loans specifically designed by loans companies to help you fund an essential home improvement projects.Home improvement loans provided by loans companies are secured on the value of the borrower's property.
No Credit Check Personal Loans - If You Need Fast Cash, A PayDay Loan Online Is a Very Quick Process
Online payday loans can get you fast cash through a very quick process. By processing applications online and depositing money into your checking account through direct deposit, you can have your cash advance within hours.
Finding the Best Secured Loan for Your Money
If you're looking for a secured loan, there are several options available to you. Most banks and finance companies will issue a secured loan to people with good or bad credit? since the loan is secured, there is a much lower chance of them losing their money if the borrower is unable to repay the loan.
Loans - Good or Bad Debt?
When borrowing money it is usually because we lack the cash to make a large purchase, such as for a car, home or education. However, an important question to ask yourself when borrowing is if the purchase you would like to make is creating good debt or bad debt.
When the Bank Says NO!
Factoring has been practiced for centuries. The Romans sold promissory notes at a discount as did the Phoenicians.
Federal Housing Administration (FHA)
FHA loan programs:FHA AccessFHA Cal GoldFHA Rural GoldFHA Mutal Mtg. InsuranceFHA 203 (k)FHA 203 bFHA 251FHA Title I programFHA MIP RefundThe Federal housing administration was created by Congress in 1934 as part of the national housing act.
Personal Loans and Lines of Credit
Personal LoansNormally, a personal loan is unsecured meaning there is no collateral. When you obtain a personal loan, you borrow an amount of money for a set period of time and pay interest on the outstanding principal balance.
Secured Loans - UK Overview
Borrowing money has become more and more popular in the UK over recent years, and this is partly due to the fact that it has become far easier to borrow money. The rising popularity of consumer finance has also been aided by the wide variety of deals and the low interest rates available these days.
Devising Newer Ways of Repayment
How good would it have been had there been no obligation to repay the loan or mortgage? This is what most people think when required to make the monthly repayments. But try as much as they can, they are never able to change the situation.
Locating Cheap Personal Loans
Locating the cheap personal loans that you're looking for isn't always easy? sometimes it might seem as though there aren't any reasonably-priced personal loans to be found unless you have absolutely spotless credit or connections within the banking industry.Luckily, you don't need either of these to find some of the cheap personal loans that you're in the market for; all that it takes is a willingness to do some research and the conviction to keep shopping for a loan even when things seem hopeless.
The Best Day of The Week For Payday Loans
Whether your payday arrives every Friday or every other Friday, payday is definitely the highlight of the week. How to spend your payday depends on your goals.
A Look at Common Types of Loans
People sometimes wonder about common types of loans, especially with all of the different types of loans available.There are many common types of loans that may fall into the same categories, as well as some common types of loans that are only different in one or two small ways.
Wedding Loans Because Wedding May Be Made In Heaven But They Are Certainly Not Made For Free
Wedding loans because wedding may be made in heaven but they are certainly not made for free.The one day that encompasses the glamour, the thrill, the dreams, the nervousness, the apprehension, the happiness and the most profound feelings of your life is the wedding day.
What To Consider Before Applying For A Loan
Here are some useful tips on what to consider before applying for a loan. If you need money to pay bills or make home improvements, and think the answer is in refinancing, a second mortgage, or a home equity loan, consider your options carefully.
Searching for the Perfect Car Loan
Credit Unions have long been known as the place to go when you are in the market for a new or used car. Today's credit union pairs its long history of car financing with technological and bargaining tools that help consumers every step of the way.
High Risk Personal Loans - Revive Frustrated Loan Hunting Attempts with High Risk Loans
Bad credit seems like an unfinished business, you can't shake it off, and you can't move on without putting it away. Unfinished business is meant to be finished.
Finding the Loan UK that Meets Your Needs
For those in the market for a loan UK , it can sometimes seem like nothing is going your way and all of the offers that you've received come with some sort of catch.Some lenders will institute hidden fees and questionable loan terms for your loan UK , and others simply charge extravagant interest rates and expect you to pay everything that they charge.
A College Loan Will Finance Your Education!
A college loan has given people all over the United States a chance to further their education, even if they are not making a lot of money. Education loans can be a big help in paying for college.
Are You In The Market For a Car Loan?
Car loans are a tempting way to purchase a new car. While they provide for easy access to a car, these loans can get quite expensive if you do not know enough about what you are getting into.
Many People Have Realized the Convenience and Benefits of Online Personal Loans
The Internet has provided a whole new dimension to obtaining a personal loan. Before lending companies were available on the World Wide Web, people were limited with their loan options and from where they could get a loan.
|home | site map|
|TIGER MEDIA© 2006|