The concept of money lending has existed for millennia. Since the commencement of trade, human beings have, on occasion, found themselves on economically unequal situations where one cannot always afford to pay for what they need. It is for this reason that in early civilisations, farmers would borrow seeds and repay with grain after their fields yielded a harvest. They would also borrow livestock on the promise that it would be returned upon the arrival of a new calf.
Over time lending has become more sophisticated which led to the creation of banks which issue loans to borrowers at an interest. The growth of the banking sector necessitated heavy regulation to protect and guide the sectors’ players and to balance risks and opportunities in loan transactions.
