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 proof that farmers took installment loans to purchase their plants to be repaid at a training that nevertheless takes place today in our contemporary world.
In 1800 BC in Babylon, today’s central Iraq, there is some associated with the first documented regulations for installment loans. Within the 18th century BC, Hammurabi, the King of Babylon, created laws and regulations stating, “all loans needed have general public witness to be valid”. He also set the appropriate maximum interest become charged at 33per cent for grains and 20% for silvers lent. Much later in 1545, King Henry VIII set the limit that is legal interest at 10%. Continue reading “Reputation for installment loans. Its thought that the installment loan was made in the 1st known metropolitan civilization Sumer.”