The Truth Behind Moneylending


Since time immemorial, money lending has been the primary scapegoat for practically every economic problem. Whenever a breadwinner runs out of cash to pay the electric bill, money lending helps solve the problem. When an entrepreneur wants to venture a new line of business but does not have enough capital to finance it, again a money lender saves the day. See how in demand money lending is in every generation.


Given this background for the money lending industry and its enormous contribution as well to human well-being, a big question of why are we still hearing negative and ill-disposed comments among its consumers and the general public?


It is common knowledge that for an individual to loan a certain amount of money, interest is added to it at a certain rate allowed by applicable laws. This is called usury. The practice enables an individual without money and another individual with money to mutually benefit from the affluence of the latter. This is an acceptable procedure because the profit that comes from the interest is what keeps the business running for moneylenders. However, the root of the problem can be attributed to the excessive, unreasonable and illegal interest rate that other lenders are imposing to their consumers which cause the latter to be buried alive by debt. Instead of helping the needy, the otherwise happened.


The antagonistic view toward usury stems from two interrelated sources which are economic and ethical. The former being that usury was regarded as unproductive because another person is gaining at someone’s misfortune. While the latter was due to biblical origins which deemed usury as unjust and selfish. This might be true to some but other money lenders are doing the best that they can to comply with money lending laws which ensure general welfare among its consumers by means of  imposing reasonable interest rate and just term agreements. Needless to say, take into account as well the borrowers who sometimes took out loans they cannot afford to pay back or living a lavish lifestyle they cannot sustain the reason why they oftentimes ran out of cash.