In the Spring and Autumn Period, there was already a credit industry. Uncle Xiang said in Mandarin that Luan Shu's son was "arrogant and extravagant, insatiable (extremely) and bribed with fake loans", which meant that lending money for profit was a way to increase his wealth.
The owners of credit loans are mainly agricultural loans. The so-called agricultural loan is a loan for poor farmers to maintain their livelihood, so that they can engage in normal production activities. After the summer harvest and the autumn harvest, farmers repay the principal and interest, which not only increases the national income, but also solves the poverty of poor farmers. Although this kind of agricultural loan exploited farmers, its positive role should be affirmed.
Seeking loan guarantee:
In order to ensure the safe recovery of the loan, it is best to have a reliable guarantee. Generally speaking, there are three ways to guarantee loans:
1. Get a mortgage. The borrower provides real estate, sets priority property rights for the lender, and goes to the Land Bureau for mortgage registration.
2. Get the pledge. Borrowers use movable property or rights (such as pearls and antiques; Stocks, corporate bonds, etc. ) as a guarantee for the lender.
3. Find a joint guarantor. The contract states that "the joint guarantors jointly guarantee that the borrower will earnestly perform the provisions of the loan contract", and the joint guarantors personally sign and seal the contract.