The History of Interest Rates
Have you ever wondered where interest rates came from or when they started? The general consensus online is that it started in 4000 BC in the pre-urban societies of Europe. According to the American Monetary Institute, back then, loans were made in seed grains, animals, and tools to farmers. Since one grain of seed could generate a plant with over 100 new grain seeds, after the harvest farmers could easily repay the grain with “interest” in grain. When animals were loaned, interest was paid by sharing in any new animals born. Interest on tool loans would be paid with some of the produce which the tools had helped to create.
It wasn’t until about 2000 BC that interest was introduced with silver, or other types of monies/exchanges for goods. So, for over 4000 years, people have been either paying or earning interest. It is amazing to think how much history affects our lives today.
Now that you know the history of interest, it is important to know that in today’s world, you have options when it comes to interest rates. When you are looking for a commercial real estate loan, make certain that you do your research on interest rates. It may surprise you to know that they vary greatly in our industry. One of the greatest things about working with First Capital Commercial is that we will shop your loan out to multiple banks and credit unions to get you the best interest rate possible. When banks/credit unions compete, you save money, and that is what we aim to do.