The term “lending” has been used forever. The process of lending has existed since ancient times. Now, the question arises: what is lending, how does lending start, and what is the present status of lending. Every individual hears the term “lending” in their daily lives. Every person has a different understanding of the term “lending”. In simpler terms, lending is the process where a lender (a person) who has surplus money gives a loan to a borrower (who needs money) and the borrower pays interest to the lender in the form of consideration. Then, the borrower has to repay the loan with a specified amount of interest to the lender in a stipulated period. Lending mobilizes the money in the economy from those who have surplus money or are willing to give loans to those who need money. This article provides a general overview of the money lending process and how it has changed over time.

Lending in Ancient Times

Lending is the term that an individual hears daily intheir lives. The process of lending has existed since ancient times. In ancient times, the lending process began as an exchange of money for some goods. Exchange is the most important thing in an individual’s life. For instance, in ancient times, lenders gave money to people in exchange for goods. Around 3000 BC, money lends us originally. Farmers borrow money from lenders in exchange for food, grains, and seeds. Interest rates were first introduced in 1753 in Mesopotamia. It was established that the bill of exchange originated in India around 321 BC. It was found that borrowers were good at money lending in Tanjong Pagar.

Lending in the 20th Century

As time changes, the structure and process of money lending also change. In the ancient and mediaeval periods, money lenders charged high-interest rates to borrowers owing to their poor circumstances because the borrower had no alternative options. But in today’s time, borrowers have multiple choices for getting loans.

Online lending

Change is the new constant. Borrowers have to undergo various forms of paperwork to secure a loan from a lender like banks, financial institutions, etc. But online lending has eliminated this problem. Borrowers can secure a loan at minimum rates with less paperwork through various line platforms, which indicates the supremacy of the borrower in the lending marketPagar.


Money lending has existed since ancient times and it is a necessary part of an individual’s life. In ancient times, people received money for goods, grains, etc. In the mediaeval period, borrowers had to pay a high-interest rate to the lender to secure a loan because there were no choices. But in today’s time, a borrower has multiple choices, plans, and platforms to avail of credit and secure the best deal for a loan.