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Origin of loans: evolution of loans over time

The need to get money in advance is almost as old as civilization. The origin of the loans has a history that goes back many years; It can be said that it is among the oldest financial procedures. We can register its origin until the Ancient Age, at which time the first empires rise. Where did it arise exactly? Find out in this post

Origin of loans in Mesopotamia

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The first registered on the loans appear more than 3000 years ago in Mesopotamia. It is said that the first financing was made between friends and family. Meanwhile, in other markets, more formal contracts were made that included interest. Thus, it could be said that they were formalized very quickly. Although it was Greeks and Romans who were most dedicated to this activity. Thanks to this practice, both civilizations managed to prosper.

In addition, loans used to be fast as they were intended for timely payments. In the case of the Romans, specific laws were established to control interests. In this way, they tried to put an end to the abuses and even to end the penalty of slavery for non-payment of debts.

The arrival of the Middle Ages

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With the fall of the Roman Empire and the expansion of Christianity, the loans almost fell into oblivion. This was because the economy went bankrupt; also that Christian morality was against the accumulation of wealth.

It was common to accuse usurers of the few lenders that existed, which used to be Jews. If you ever wondered why you hate this person, it was precise because of their dedication to finance and the origin of their loans.

The Jews, thanks to their perseverance as lenders, came to amass true fortunes. These were so large that they financed entire kingdoms and all kinds of businesses. In addition, they offered 0% interest to members of their community, something they did not do with other people.

Modernity and the arrival of the contemporary world

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The economy began to grow stronger and with it the loans. The voyages of the discoverers like Columbus when he discovered America, were financed with loans. Carlos V himself, emperor of Germany, requested money from the nobles he ruled. This was very common among kings and emperors. Thus, during the Modern Age, this practice became habitual, which was reinforced in the eighteenth century; the moment in which the first commercial banks were created.

Without an overwhelming growth of wealth, all this would not have been possible. Thanks to this, we can now find a wide range of loan offers. Which adapts to the conditions of any person.

In short, the origin of the loans has been and will continue to be part of the history and development of civilization. During his passage through time, he encountered ups and downs, as in the Middle Ages; but they managed to survive because of their usefulness and the need that existed. Today, finances are available to everyone just one click away. In Good Credit Loans you can find financing from 300 dollars in just 15 minutes.





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