Before going to the history of money lending, let’s first understand, what does money lending mean?
“The act or occupation of lending money at interest is named money lending”. In other words, money lending is the act of giving money to someone with the expectation they will pay you back in the future. Companies good at personal loan in jurong east also can be helpful.
History of money lending:
So how did money lending begin?
Thousands of years ago, the history of cash lending began with farmers borrowing capital and livestock using seeds and grains as repayment options. Since then, the lending process evolved into a posh financial procedure before developing into a modern, streamlined system within the digital era.
Did you know, the history of loans can be traced back to 3,000 years ago!? Since the start of civilization itself, lending has been lurking around in some shape or form.
The history of lending has shown us that the massive progress of civilization would not be where it is today without loans acting as the igniting fuel.
1754 BCE- Mesopotamia
The Very First Large-scale Loan System systems of loans and credit started from here. Code of Hammurabi defined the worth of silver and how the interest charged on silver loans was to be regulated.
321 BCE- India (The First Bill of Exchange)
One of the earliest ever recorded examples of a bill of exchange was in India. The Maurya dynasty developed letters of credit which also helped issue bills of exchange to foreign countries for sea-borne trade.
400 BCE-Ancient Greece
The First Payday Loans in Ancient Greece pawnbrokers lent money by collecting collateral from a borrower and reducing the risk of the lender. this is something we still use today with when it comes to secured business loans.
1400 AD (Middle Ages)
Lending Outlawed Christianity and Islam outlaw lending with interest, which led to persecution of Jews, since they had not outlawed it. This lasted until the 18th century.
Mid-18th century technological revolution & International Finance
Mid-20th Century Loans-Cards Are the New Silver:
In 1950, Frank McNamara made history when he paid a restaurant bill with a cardboard card, now referred to as a Diners Clube Card. some years later the Bank of America started launching the BankAmericard, the great old fashion Visa.
1980’s-Online Lending is Born:
Computer and electronic data revolutionized the lending process. Quicken Loans was introduced in 1985 and offered most of their application and review process online.
Present-Alternative Online Lending
This immense technology jump has eliminated the large amount of paperwork and headache of traditional loans making way for a totally new era of online lending.