Loans and money lending have been a process for ages, that evaluates reasons for the borrowing of money by certain aspirants and lends them funds accordingly with rates of interest on repayment. Basically, knowing why, when, and how lending procedures began ranges back to the history of loans. And if you are here not just to learn the historical aspect of loans but also to look for someone good at money lending in Tanjong Pagar, you stumbled upon the right place.
Let’s start by briefing key points that contributed to the development of loans.
- When and Where did Money-lending originate?
Money lending eventuated in about 3000 BC in ancient Mesopotamia which was home to many different groups, including Sumerians, Babylonians, Assyrians, and Persians.
- When did it Emerge as a Regular Practice?
To the west of Mesopotamia, lending was structured as a regular practice where the concept of interest was commonly accepted in ancient Greece. It was reasonable for a lender to risk his money to receive a profit in return in Greek times.
- Lending and Religion (500Ad-1500Ad)
Religions have proficiently emerged as condemners of the lending of money at interest rates, where the Qur’an and Bible renounce acquiring interests. The Torah however ensures interest. It allows Jewish people to lend at interest rates to non-Jewish people only. Early Islamic scriptures have censured interest rates as undeserved income known as ‘haram’.
- Lending and United States
The establishment of the Philadelphia Savings Fund Society in the 1800s in the United States emerged as the first banking facility that initiated the practice of lending. It was then that lending schemes became permanent in the American region. Although, it’s noteworthy that the first bank was established in America in 1791.
Philadelphia Savings Fund Society was essentially a bank, although the term was avoided in the early times since the public was hesitant towards financial institutions at the time.
- Lending and Present Times
From the 1900 century to now, lending has evolved into forms of Credit Scores and Credit Cards. Initially, credit cards were issued by respective retailers for their customers, then Americans began their use in the 1920s. Credit Cards were universally accustomed and issued by Diner’s club which also charged the merchants 5-7% out of the gross billings.
The history and evolution of loans and money lending has invigorated funding practices around the world since its birth and will continue to do so in the coming times.