The Inevitable Transaction Called Loans

People do need money. And sometimes, or most of the time, people’s demands and needs do not cover or amount to that they are capable of earning.

Thus, even in ancient times, civilizations have devised how to lend money to those who need–through loans. But loans or money-lending activities should not be considered as charitable or divine acts of giving or lending.  You can also apply civil service loan via (also known as über beamtenkredit  in German language)

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Even in the times of the Old Testament of the Bible, people make loans. And lenders do provide those needs, but there is a catch. Every penny lent or borrowed should be returned, with interest.

Modern day loans

Loans have also evolutionized from the simple terms they had in the old civilization to the complex loans and lending systems we have right now.

Simple loans like that now are even made simpler. Simple money loans can be made with collaterals, and every lender will be much willing to provide for these loans. Why? Because the interests will generate them so much revenue.

What more, collaterals are guarantees. So if a particular borrower will not be able to pay back the loan, the lender will rake in the collateral and take it as their own asset.

The lender then will be able to put the property or item on sale and collect the amount of loan borrowed from them, with the corresponding interest.


One common form of loans is mortgages. When you say mortgage, it means the loan is done with a particular collateral, usually a house. Mortgages are made if the borrower needs a substantial amount.

Proceeds from the loan can be used in a variety of purposes that might include hospitalization or disease treatment, further investment or other expenses.

Most mortgage companies, particularly in the UK, in the United States, and other developed nations, are thriving because a lot of borrowers take mortgage loans. Most of these borrowers are not always able to pay back, so lenders are left with greater portfolios of assets consisting of homes and properties.

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