Consumer loans, when and how did they originate?
It is very likely that you are aware of the existence of consumer loans. But do you know when and how they originated? Over the years, users have experienced different trends, so changes in consumer habits have experienced in the appearance of these credits.
History of consumer loans: everything you need to know
First of all, what is a consumer credit? It is a contract in which the lender grants a credit or financing to a consumer; under a specific form of payment and return within a certain period.
Credit contracts to the supply of goods or continued provision of services are not considered. But yes to the granting of a credit under deferred payment, loan, opening of credit or other means of financing.
Moreover, the Bank of Spain (BdE) introduces consumer loans into a category within personal loans. Why? This is due to the fact that a good part of personal loans are destined to buy goods or services, which is why they are considered consumer loans.
Where do consumer loans come from?
The origin of consumer loans dates back to the second half of the fifteenth century. More specifically, they emerged in northern Italy, known as the Good Finance.
The International Association of Loan and Social Credit Institutions itself has stated that it was the Franciscan friars who created these “Pieta Mountains” thinking of Jewish lenders; which were the only ones that gave consumer loans in exchange for large interests (30 – 200%).
With the aim of relieving the peasants, the Franciscans opted for this business model; in order to lend small amounts of cash with a pledge guarantee, and without interest.
In 1515, Pope Leo X approved the collection of interest. Since then the Good Finance decided to charge them. Then, years later, they spread throughout the Catholic territory.
They began to shoot during the twentieth century, with the arrival of the car. First in the US and then in Europe. Its success was such that in the second half of the twentieth century, consumer loans had to be legislated.
How to apply for a consumer credit?
Taking into account changes in consumer habits, it is increasingly common to use consumer loans.
If you download our application to control expenses you will see that we have a loan section from which you can see the amount you can request, based on your FinScore. In this way you can organize expenses and cover any hole, with a small credit adapted at all times to your possibilities.
We also invite you to take a look at the Good Finance loan website. In this way you can perform a simulation, so that you know the amount you can access.
It does not matter if you need a personal consumer loan; because from Good Finance we can help you in a transparent way, both to save and to get extra money for whatever you want