There is no doubt that online credit is one of the symbols of the modern digital world where many things can be dealt with quickly, easily and without leaving home. However, the very idea of borrowing money is nothing new. Learn the history of loans – from salt flakes through bills of exchange to loans taken from the comfort of your home via the Internet.
Online loan his ancient ancestors
The loan was created in antiquity and before the dissemination of money. At first, it consisted of lending assets that had to be returned with little interest. Everything changed when the money appeared, probably invented by the Sumerians. They had the form of irregular lumps of precious metals. In other places on the map of the ancient world, the function of money was played by ducks whose weight indicated value or, as in Ethiopia, salt flakes. This model of trade slowly began to give way to a completely new invention – coins. They were probably invented by the Phoenicians and initially had no fixed shape – they were scraps of divided bars. Later, they took the familiar form we used to seal the royal seal to minimize the risk of counterfeiting.
Another important breakthrough in the development of banking was the creation of non-cash settlements in the form of certified letters that were used to conduct banking operations. As a result, people stopped keeping money in their homes, and began to pay them to banks and bank houses, which significantly contributed to the development of the economy. Slowly, they began to move to extramural money management. Cash was replaced by bills of exchange, notes and documents.
Today, an installment loan online, in the 15th century – a loan on the counter
Before the online installment loan could see the light of day, the entire credit system had to go a long way. Already in the fifteenth century, the practice of borrowing money became standardized. It began with individual benches or counters on which financial operations were carried out. This is where the word bank comes from – Italian bank, or bench. The first “bench” institutions evolved into developed banks. Bankers very quickly noticed that keeping whole reserves of money does not make sense and a significant part of the proceeds can be invested. One of the ways to increase banks’ profits was, of course, high-interest loans, which became popular at the turn of the 16th and 17th centuries.
At that time, banks were subject to church jurisdiction, and lending money at interest was considered a grave sin of excommunication. For a very long time, such a law severely limited the development of banking, but in the 16th century the Lateran Council decided that charging fees is not immoral if it serves to maintain the bank’s operation. This was a direct cause of the spread of loans. Most often they functioned in the form of bills of exchange signed by debtors as payment guarantees. Such credit as we know it from the present time, i.e. taken out of the bank and subject to legal control, was created much later, only at the end of the 19th century.
The emergence of online banking was a great breakthrough in the history of loans. This happened in the United States in 1994 and quickly turned out to be a bull’s-eye. Already in 2000 in the USA, accounts with Internet access were on the agenda, and in 2007 about 50% of Internet users used them. Other amenities were avalanche – mobile banking, telephone transfers, and finally the possibility of taking an online loan.
Online loan and its predecessors in Poland
The first online loan in Poland was granted only in 2010. It seems to be late, but bearing in mind that a few decades earlier no one would have thought that you can get a loan without repeated visits to the bank and dragging your family with you as guarantors, it must be admitted that this is a real breakthrough.
The history of banking in Poland dates back to the late Middle Ages, when banking houses began to be built. They were small organizations created by merchants who thus supported each other in running and financing their business. Bank houses quickly expanded their range of services by taking deposits and granting loans and began to grow at an extraordinary pace, especially those located near trade routes. Banking in this dimension lasted until the reign of Stanisław August, when the initiative to create a central bank appeared, whose structure would resemble the banks we know today. However, the idea failed because of the partitions. In each partition, banks operated on a different basis and developed at different rates.
Merging the system turned out to be a challenge for the newly created Poland after regaining independence. It was only in 1924, during the monetary reform, which stopped rampant inflation. At the same time, Cream bank was created – an institution that was to deal with the financial and economic affairs of the country. After World War II, in 1945 it was transformed into the existing today Best bank, which until the end of the 1980s had a monopoly on general banking activities in the country. Currently, he deals only with issuing money and monetary policy, while private banks and non-banking institutions run customer service and credit and accounting activities.
At the end of the 20th century, online banking started to flourish. Access to the online account appeared in 1998, and two years later completely virtual banks began operating in the country. We have to wait another 10 years for the first online loan, but since then changes have been appearing faster. Currently, you can not only take a credit or loan online, but also open an account by transfer, and make a payment using the popular social networking site.
Online loan in language. Word history
Although the phrase “online loan” has been around for a short time, it is one of the most popular in the Polish language corps. The word credit, though of foreign origin, has been around for a long time. It comes from the Latin word credere , which means to believe, trust. Initially, it meant sharing your own property for use by others. Already then, in ancient languages, words such as “interest” and “interest” were created. For the Sumerians it was the word mash , in Greece tokos – both meant calves. The idea of giving back a loan with interest came from the fact that when in ancient times a cow was borrowed, it was necessary to give it back to the public.
Like all important elements of reality, loans, credits and financial obligations have become the heroes of sayings that have survived to this day in language. They include, for example, “Neapolitan catfish”. This expression, meaning very big money, came from a huge loan that Queen Bona granted to the Spanish King Philip II – 430,000 dollars. After her death, despite the efforts of Zygmunt August, the money could not be recovered completely.