Interesting facts about loans and banks
Modern Russians have long appreciated all the delights of loans that can be taken at any time, in virtually any amount, for any time frame and with minimal interest rates. You can buy immediately and anything, depending on the desires. The money, naturally, will have to be given later, including a small percentage. Without interest there is no sense of crediting, and therefore it is an integral part of any loan. But these are everyday, well-known realities, and we would like to tell you about the most incredible stories about lending, for example, in ancient Egypt, for example, a special form of a loan agreement was distributed. If the debtor did not return the money on time, he risked becoming a slave to the lender, in case it was not possible to return the money in any other way.
Interesting fact number 1: The first loans in the world appeared in Assyria, Babylon and Egypt. Scientists have found evidence of this, in the eighth century BC. there were the first moneylenders who lent money at interest. Also in circulation then were special bank notes (analogs of modern securities), which were called hudu.
Interesting fact number 2: In ancient Greece, lenders on the land of their debtors placed signs that were called hypothéke (mortgage). It meant that if a loan was not paid, the land would become the property of the lender.
Interesting fact number 3: The oldest bank in the world called Banca Monte dei Paschi di Siena is located in Italy. This credit organization appeared back in 1472.
Interesting fact number 4: The first lending advertisement appeared in 1730, where Christopher Thornton (who submitted the advertisement) suggested that consumers buy furniture and pay for it once a week.
Interesting fact number 5: On loans and its types you can talk endlessly and, by the way, in the modern world, you can easily take quick loans, SMS credit and other loans.
Interesting fact # 6: Prototypes of credit history bureaus are organizations of 19 centuries that collected information and provided customers with information about individual merchants and enterprises. This information was the main confirmation of the reliability of potential business partners. In Russia, such reference offices appeared in the early 20th century. They were both private and professional associations.
Interesting fact number 7: The laws of King Hammurabi, who was famous for justice and wisdom, allowed the ancient Babylonians to give their own children as collateral for their debts.
Interesting fact number 8: In ancient India, they went further and legitimized moral usury, introducing it into special spiritual norms that all citizens of this state were guided by in everyday life. Moreover, the lender was entitled to return his money with cunning and strength. However, if the debtor belonged to a higher caste than his lender, then this rule could not be used.
Interesting fact # 9: In ancient Rome, if the debtor was not able to return the money taken from the creditor, he was imprisoned in a debt prison from which he could be redeemed within a month. After this period, the lender brought it to the market on market days. Anyone could buy out the debt and with it the debtor. The relationship between the redeemer and the redeemed further developed mainly according to the saddest scenario.
Interesting fact number 10: In those times, no lender needed a scoring program. By the mind of the borrower, you could immediately tell what he was asking for money for. The poor man needed them to survive, the peasant usually wanted to buy another ox, and the rich man most likely wanted to buy an object of art or a new slave. The law defended creditors, and therefore they did not risk when they were engaged in their business. In ancient times, re-laying and sale of property was commonplace.
Interesting fact # 11: In the Middle Ages, the situation changed dramatically because the church condemned the activities of creditors. This did not, however, lead to the disappearance of usury. It was just that creditors had to fake it and come up with indirect loans so that they would not be accused of a serious sin for earning a percentage. In the fourteenth century, the Italians invented bill crediting. It was carried out according to the following scenario. The borrower came to the usurer and received his credit limit in one currency or another, along with a bill that could be repaid in a clearly defined time frame. The amount on the bill was slightly higher than that which the borrower received in his hands. The difference was the percentages for which the church so condemned the usurers.
Interesting fact # 12: It was possible to leave the pledge as valuable if the loan amount was small, or even the estate, in case the borrowed amount was impressive. There was no fundamental difference for what purposes the money taken on credit went, only the total amount of the loan was important. Thoroughbred trotters were not taken as collateral, because a living creature could die at any moment for any reason, and the usurers did not like to risk.