Loans in general

A world that everyone can get into. There are a number of situations in life that cannot be solved in any other way than by a loan – whatever the extent. Let us therefore explain the basic concepts of loans and let’s also give some advice to follow to make the loan really fair and profitable.

Nothing is obvious as it seems at first glance. Obviously, an exaggerated advertising campaign does not mean that a loan will be a truly attractive matter worth paying any attention at all.

In fact, a loan is not an easy thing at all

You have to think about it carefully and consider it, otherwise you can easily burn yourself and lose money. Being able to assess the advantage or disadvantage of a given offer can be done without a university degree in economics, sometimes you just need to know what certain terms or abbreviations mean. Sometimes they come from Latin or other – somewhat non-standard languages ​​today – but they speak really clear language.

Actually, as old as humanity itself

The loan is something that technically existed even before the introduction of metal or paper money of all kinds, it was commonly traded, for example, with metal sheets (copper, silver), the Slavic world knew the term “canvas”, a piece of cloth meaning cash. In ancient times it was quite common to borrow seeds, but also agricultural tools, horses, everyday items – always for some specific consideration in kind.

A revolutionary innovation was the banks, which in modern form appeared for the first time in Italy, although to some extent knew the ancient world. The mediaeval period was able to define very well terms such as “loan” or “interest”, but also “real estate collateral”.

Loans that were provided by means of paper money are known to Europe in the early modern period. At the time of Renaissance magnates who wanted to value and safely store their property, the commercial banking system flourished. In contrast to the cash or valuables presented, the document we now know the “shares”, “bonds” or, for example, “bills of exchange” was issued to nobles or rich burghers in financial institutions.

Feel free to learn from history

It is true that not every loan can be profitable, not every one is also completely transparent. This was true even in the long centuries and millennia of European and world history. And it is precisely from some historical events that we must learn to avoid them in the modern era. Of course, this also applies to the loan world, which is still governed by clear rules. Those who want to borrow without risk must know similar recommendations in advance, because it is clear that no later complaints need to be taken into account.

With no upfront fees, it is now a principle for anyone who wants to borrow and does not want to be cheated. The terms and conditions must be clearly defined and, in case of doubt, explained very carefully. There is also interest, the amount of which is really meaningless – a usury, which you should of course avoid in your own interest. If you follow these few principles, a fair loan agreement may be coming soon. Let’s explain some basic concepts around the world of loans.