Reputation for installment loans. It really is thought that the installment loan was made in the 1st known metropolitan civilization Sumer.

Reputation for installment loans. It really is thought that the installment loan was made in the 1st known metropolitan civilization Sumer.

We have evidence of this practice dating back to 3500 BC! Sumer was in what is now Southern Iraq and had a robust agricultural community even though 89% of their population lived in an urban setting while it is believed that installment loans are a fairly new concept. There is certainly proof that farmers took installment loans to purchase their plants become reimbursed at a training that nevertheless takes place today in our contemporary world.

In 1800 BC in Babylon, today’s central Iraq, there is some for the first documented regulations for installment loans. When you look at the eighteenth century BC, Hammurabi, the King of Babylon, created regulations saying, “all loans required have general public witness to be valid”. He also set the legal maximum interest become charged at 33% for grains and 20% for silvers lent. Much later in 1545, King Henry VIII set the limit that is legal interest at 10%.

It had been into the 1500’s, through the “Age of Discovery”, the very first American roots to lending began since it is documented that Christopher Columbus took away loans in Spain for their travels and also to find the world that is new. Continue reading “Reputation for installment loans. It really is thought that the installment loan was made in the 1st known metropolitan civilization Sumer.”