What are hand loans?
The hand loans are basically a practice of lending cash loans or providing goods and services that is to be repaid with some interest which is pre-defined. This is an unsecured type of a short-term loan where the receiver need not provide any collateral. It can be used for any purpose such as buying house, pay bills, children’s education, start up a business and so on. These loans require less documentation and are quick compared to the bank loans.
A brief history
The oldest method of lending money was started by Pawnbrokers who are individuals or a company that offered secured collateral loans. This system was carried out by exchange of goods in order to reduce risk of the lender. The person who wanted a hand loan had to give equivalent amount of goods to the lender to get cash. The “Saudagars” motivated the needy to run their own business and they would accept gold, silver and diamonds as collateral from the people.
Then came in the Zamindari system, introduced in 1793, where the Zamindars who are the land owners lease their lands to tenant the farmers. It started in the provinces of Bengal, Bihar, Orissa and Varanasi. As they were considered to be land owners they were required to collect taxes from the farmers. The farmers were greatly exploited during this time. People who were not farmers had to work for the Zamindars to repay the cash loans they had taken from these landlords. The Zamindari system proved to be a boon for the government as they received regular income and the landlords who prospered at the cost of welfare of the tenants.
In India, the practice of lending money had been going on since ages. With the advent of new media technologies and digitalization, the lending system in India has also changed. Today, the unsecured loans can be found online where a borrower sends an application to receive a loan and the lender approves the application if they find it genuine and have confidence in the borrower. They also check the credit score of the borrower before approval and each lender has different minimum cut-off in terms of the credit scores. This saves a lot of time and paper as everything is online and digitalized.
One such website for lending unsecured loans is marwadihandloan.com that provides both private and institutional loans. The money borrowing becomes speedy and smooth as the lenders and borrowers are verified. Loan is given at the borrower’s terms where they can choose between the many offers made by the lenders which are suitable to them. This way the borrowers get flexible repayment options for the unsecured loan.
Obtaining unsecured loans today is just a few clicks away!