History and Basis of Loan Instalments and Equity Release


Lending and borrowing were initially in progress on an official status in the 17th century. Goldsmiths, back in the olden days were trusted by their customers. The customers handed over their precious gold belongings over to their respective Goldsmiths, who in turn safeguarded the precious items with their heart and soul.

Loans, Lending and Borrowing:

As a consequence, Goldsmiths in an effort to rid themselves of the gold initially started lending the precious treasures to needy and deprived people, who were in a desperate need of income. The Goldsmiths got their money’s worth by devising ways in which they got their money back. They did this by taking the cashback from their underprivileged customers in the form of Installments. Ever since then, the concept of lending, borrowing and payback in instalments began to take shape.

In the 18th century, the rich merchants of Portuguese origin arrived in the UK. These merchants were so rich that even the kings used to borrow money from them. Since then, the idea of lending and borrowing has moulded into some major form of business.

The interest rate is determined by the state bank of any country and varies from bank to bank. Furthermore, the rate of interest that is accompanied by each respective loan differs significantly.

Common Types of Loans:

Listed below, are a few of the most common types of loans present today. Such loans usually require their borrowers to repay the cash in the form of small initial payments known as Installments. The number of instalments could take varying time periods depending on the nature of the loan, the borrower has taken.

Credit cards and
Cash advance loans

All the loans listed above are applied with the rate of interest prevailing. The Mortgages Loans are the most long-lasting loans. Generally, these loans last for more than 10 years.

Payday Loans are criticized for having the highest rate of interest which is nearly 300%. Payday Loans are generally not paid back in instalments, but at one go.

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Equity release options for older people

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