Before anything else, let us familiarize and define the true meaning of loan. A loan is something you get from borrowing through a person or may it be an organisation. The both parties will negotiate to what and when will be the debt will be pay by the debtor and if it exceeds, there will be a corresponding amount of interest as a financial compensation. Furthermore, there are many types of loans and at the same time has a specific purpose.
The negotiation of lending and paying has been visible even before with our ancestors, however it’s footprints of whereabouts are unclear and uncertain. It’s not like there’s no concrete documentation, in fact, the history was written dating back centuries ago, that shows how loan has evolved throughout each millennium.
Frankly, the earliest form of lending was written on the bible! Can’t you believe it? The cultures of Greek and ancient Romans has shown a lending evident and it was widely visible during the early years.
However, the oldest monetary exchange took place between Babylonians and Assyrians where traders would grain loans to merchants and farmers. Although, this monetary exchange is done by the low class of the society, it still looks sophisticated as if they are doing a bureau de change.
The fact that licensed money lending in Singapore has been practised even before our great great ancestors exists, it’s evolution did not happen quickly, but it was on the late 1800’s that the powerful merchants and even churches has focused on the benefit of the interest itself, rather than the money to be lend.