origin of loans

Origin of loans

The need for advance money is almost as old as civilization. The origin of loans has a history that goes back many years; it can be said that it is among the oldest financial procedures. We can record its origin until the Ancient Age, when the first empires arose. Where exactly did it come from? Find out in this post

Origin of loans in Mesopotamia

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

Also, 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 end the penalty of slavery for non-payment of debts.

The arrival of the Middle Ages

With the fall of the Roman Empire and the spread of Christianity, loans fell almost into oblivion . This was because the economy went bankrupt; moreover, Christian morality was against the accumulation of wealth. It was common to accuse the few moneylenders that existed, who used to be Jews, as usurers. If you ever wondered why they hate this town, it was precisely because of their dedication to finances and the origin of their loans.

The Jews, thanks to their constancy as moneylenders, came to amass real fortunes . These were so large that they financed entire kingdoms and all kinds of companies. In addition, they offered 0% interest to members of their community, something they did not do with the rest of the people.

Modernity and the arrival of the contemporary world

The economy began to grow strongly, and with it loans. The voyages of discoverers such as Columbus when he discovered America were financed with loans . Charles V himself, Emperor of Germany, requested money from the nobles he governed. This was very common among kings and emperors. Thus, during the Modern Age this practice became common, which was reinforced in the 18th century; time when the first commercial banks were created.

Without overwhelming wealth growth, all of this would not have been possible . Thanks to this, we can currently find a wide range of loan offers. Which adapt 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 utility and the need that existed. Today finances are within everyone's reach, just one click away. In Ideal Loans you can find financing from 300 euros in just 15 minutes.

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