The principle of lending houses has been known since antiquity and is still used in an almost unchanged form as a credit source by many people. From the early “loan houses” , today’s banking system has developed.
The virtually unmanageable formalities and personal guarantees of traditional banks are completely eliminated in a mortgage lender. The principle is simple. A customer deposits a pawned object which is valued by the pawnbroker and receives a corresponding loan amount. Within four months, the customer returns and pays back the loan amount plus interest. In return he gets his pawned object again.