Loans > A Brief History of Loans

A Brief History of Loans

by: John Mussi

No one can say for certain where the history of loans began? it's likely that people have been practicing lending and borrowing for as long as there has been a concept of ownership.

The history of loans can be documented at least several thousand years back; forms of lending were evident in ancient Greek and Roman times, and monetary loans were even mentioned in the Christian bible.

The modern history of loans started much later than these ancient times, of course? it is, however, important to realize that lending started much earlier than many people would imagine and has its origin in much older times.

Indentured loans

One of the early forms of lending that should be explored in the history of loans is the indentured loan (also known as indentured servitude.) Initially practiced in the Middle Ages and through the 19th century by land owners and the wealthy, indentured servitude allowed poor individuals to borrow the money needed for major expenses such as travel and real estate.

Once the land owner or wealthy individual had secured a ship passage or piece of real estate for an individual, that individual would then have to work off their debt over the course of several years? unfortunately, many times the land owner was very dishonest and would greatly inflate the debt or would continue to add provisions to the debt long after it had been repaid.

Indentured servants often had very few rights, and were seen by some wealthy individuals as a way to maintain slave labor long after slavery had been abolished in both Europe and the United States.

Banking loans

Luckily, legitimate banks were developing even as indentured servitude was rampant. Individuals known as moneylenders played an important part in the history of loans? in fact, it's from the Italian moneylenders of the Middle Ages that we get both the English words ?bank? and ?bankrupt? that we use today.

Italian moneylenders would set up benches in the local marketplace (with the word for bench being ?banca?, from which we eventually derived the word ?bank?). The moneylenders would charge interest on their loans at a rate that they set, and would sometimes be quite successful and become very wealthy.

As an interesting sidenote to the history of loans, if the moneylenders were not successful, though, they would break up their benches and pursue other venues. The Latin expression for breaking up a bench in this way was ?banca rupta?, which eventually became the English word ?bankrupt? (which carries a much steeper connotation than simply a broken bench.)

Modern banking loans

Of course, the history of loans has progressed quite a bit since the days of the Middle Ages moneylender. Interest rates are much more controlled, loan terms have a much higher degree of fairness to them, and the banks of our era aren't out to simply get as much money out of borrowers as they can.

The modern banks, finance companies, and online lenders that provide loans to the public and private sectors provide a great service to the world economy, and are regulated by both local and governmental policy so as to make sure that nothing interferes with that service.

However, if not for some of the oppression and misdealing that was present throughout the history of lending then the fairness and opportunity that exists in banking today might not be possible? even the oppression that resulted from indentured servitude in the past helped to establish modern banking by showing what factors needed to be eliminated so as best to benefit both lender and borrower.

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 www.directonlineloans.co.uk website.

Bad Credit Loans: Civilizing Bad Debt Condition

Bad Credit Loans: Civilizing Bad Debt Condition

by: Amanda Thompson

Credit runs into our lives and has effect on almost every decision we make. Bad credit runs in our credit application and has effects on every loan we borrow. A recent survey has shown that one fifth of the adult population cannot qualify for regular loans. For such a huge loan borrowing population there are specific loan programmes called bad credit loans.

With bad credit loans you can borrow loan amounts of the likes of ?5000-?75,000. Repayment term will vary from 5-25 years. Both secured and unsecured options are available for bad credit loans. Unsecured bad credit loans will require no collateral and will suit if you want to borrow smaller amounts. For larger amounts secured bad credit loans are appropriate and would require collateral like home, real estate or car etc.

Start with your credit report and credit score - that will give you...

Bad Credit Loans: Civilizing Bad Debt Condition

Loans > Bad Credit Loans: Civilizing Bad Debt Condition

Attractive Cheap Loans in UK

Attractive Cheap Loans in UK

by: Russell Hughes

Finding a cheap loan online can be a very frustrating and time consuming affair. If you are looking for a cheap loan and you don?t know the right places to look then you may become confused and misled. But with moneyeverything.com it?s easy as this is the best place to compare and find the right kind of cheap loans side by side.

In these modern times many people prefer to apply for cheap loans online. There are many lenders who are offering cheap loans online. At moneyeverything.com you can compare lenders and rates easily. Here you will get a list of all the lenders who are willing to give you secured cheap loans at great low rates of interest. With moneyeverything.com you will find all the best deals from loan companies in the UK. It is quite...

Attractive Cheap Loans in UK

Loans > Attractive Cheap Loans in UK

Signature Loans: a Signature Can Relieve Stress Of No Collateral And Bad Credit

Signature Loans: a Signature Can Relieve Stress Of No Collateral And Bad Credit

by: Amanda Thompson

The dynamics of loans borrowing procedure has brought new ways of borrowing in the forefront. Signature loans are remote from traditional forms of loans borrowing which requires collateral to be placed as the guarantee of the loan borrowed. Signature loans are provided entirely on the receipt of a signed activation letter. Therefore, you do not need a co-signer or collateral for it. Signature loans also have another name for them - character loans.

Signature loans with bad credit can be applied for any purpose. Student college loans, home remodelling, dream vacation, debt consolidation - all can be funded by signature loans. The maximum amount on a signature loan is ?10,000. Loan lenders can offer you a loan amount of ?15,000, if your circumstances concur with the requirements. The loan amount also depends on the borrower?s ability to repay....

Signature Loans: a Signature Can Relieve Stress Of No Collateral And Bad Credit

Loans > Signature Loans: a Signature Can Relieve Stress Of No Collateral And Bad Credit

Provident Loans: Finding Opportunities Where Regular Loans Fall Short

Provident Loans: Finding Opportunities Where Regular Loans Fall Short

by: Maria Smith

One can get great prices online for a car or home but what if you want to buy a computer, television or just a school uniform? Provident loans are made to measure against fulfilling such requirements. Provident loans basically came up against various pawn shops that had emerged and charged exorbitantly high interest rates for short term loans. And now they have grown to become a significant part of the lending industry.

Provident loans are offered as small unsecured loans for amounts ranging from ?50-?500. Unsecured provident loans have small affordable payments which makes repayment easier. Also, repayment for provident loans is fixed. Fixed repayments for provident loans enable the borrowers to remain in control of their finances. With fixed monthly repayments, borrowers can safely plan their budget ahead. There are no other charges for provident loans and...

Provident Loans: Finding Opportunities Where Regular Loans Fall Short

Loans > Provident Loans: Finding Opportunities Where Regular Loans Fall Short

Bad Credit Mortgage Loans ? How To Get Approved

by: Carrie Reeder

Persistence is the key working toward getting approved for a bad credit mortgage loan. There are many factors that you, as a borrower have control over that can help you get approved faster and easier. There are guidelines that most sub-prime lenders go by that, if you know them, can help you move through the process without getting stuck, unable to get financing.

If you have a bankruptcy or foreclosure, even if they are recent, do not despair. Many sub-prime or bad credit mortgage lenders have what?s called, guidelines for bankruptcy or foreclosure seasoning. That means that they have a set amount of time that must go by from the time of a bankruptcy or foreclosure before they will lend to a borrower. Usually this time is 2-3 years, but many sub-prime lenders have no seasoning time, which means, if your credit score is above a certain point, you could get approved the day after...

Bad Credit Mortgage Loans ? How To Get Approved

Loans > Bad Credit Mortgage Loans ? How To Get Approved

Loans 101: Application and Approval

Loans 101: Application and Approval

by: Frederic Madore

A loan is a type of debt. Like all debts, a loan involves the re-allocation of money over a period of time between the borrower and the lender. The borrower initially receives an amount of money from the lender. This money is paid back either in full or in regular installments (with interest of course).

Acting as a provider of loans is one of the principal task for financial institutions such as a bank. For banks, loans are generally funded by deposits. That's how banks usually earn. Their deposits are loaned out and when the borrowers pay with interest, voila! Earnings for the bank.

Other types of debt include mortgages, credit card debt, bonds, and lines of credit. A mortgage is a very common type of debt used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The bank, however, is given the title to the house until the mortgage...

Loans 101: Application and Approval

Loans > Loans 101: Application and Approval

A Brief History of Loans

The New 5Th Generation Apple iPods

by: Katherine Xie

To date, there has been a number of Apple iPod models. Well, with the release of the new iPod Video, there are now officially three iPod models for the 5th generation of iPods. The earlier 4th generation models, including the popular iPod Mini, iPod Photo, U2 and 20GB iPod are now officially history.

The three official 5G iPod models include the iPod Shuffle, iPod Nano and iPod Video. What's the difference...

The New 5Th Generation Apple iPods

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Why Paying Off Home Mortgages Is A Dumb Idea

by: Jed Baguio

If you're planning to refinance you're home or apply for a home mortgage. This could be one of the most the best tips you'll ever recieve. If you're like majority of the population which applies for home mortgage and chooses to put a large down payment, with the shortest term attainable and paying if off as soon as possible and thinking that their doing it smart. Well, I'm sorry to burst the bubble,...

A Brief History of Loans Loans mortgages

Loans > Why Paying Off Home Mortgages Is A Dumb Idea

What You Should Know Before You Get Contact Lenses

by: Martin Smith

There are a number of reasons why so many people around the world suffer from vision deterioration old age, disease of the retina, cornea to name but a few. To help with vision around 1284 in Italy, Salvino D'Armate inventing the first wearable eyeglasses but vision aids where around much longer D?Armate design was very similar to what is still available today.

Who invented Contact Lenses?

Leonardo...

A Brief History of Loans

Loans > What You Should Know Before You Get Contact Lenses

12 Great Things About Successful Real Estate Note Holders

by: Richard Wills

1. They make sure that the insurance policy on the property is issued for an amount that represents at least the full value of the note still owed to them.

2. They also make sure that the note is recorded and they are listed as mortgagee, trustee, or the first contract holder on the policy. This guarantees that they will be entitled to any proceeds from any claim ahead of the...

financing 12 Great Things About Successful Real Estate Note Holders

Loans > 12 Great Things About Successful Real Estate Note Holders

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