What you need to know before you get a Loan from a Money Lender

Happy new year. Hope this year has some good fortune stored for you. Just in case it doesn't, there is always your friendly money lender ready to help you out.

But what does a money lender really consider before he gives you a loan.

ASSURANCES A MONEY LENDER REQUIRES FROM THE BORROWER.

1. Reliable income. A money lender is in business to make an income in the form of interest. He can only do that with the assurance the borrower will pay back. For that to happen, the borrower must have a way of earning money reliably. The more stable and reliable the income source, the less riskier the money lender feels. so for you to qualify for a loan, your capability to earn and even more your capability to pay back the loan is paramount.
2. Collateral. The amount to be borrowed must be backed by an asset that can be sold in case the borrowed amount cannot be recovered in the time expected. Nothing is guaranteed to succeed the way we want in life. So before a money lender risks his hard earned capital, assurances and guarantees must be put in place. The more valuable the collateral, the less riskier the transaction appears.
3. Integrity of the borrower. Now of all that has been mentioned so far,this carries the most weight. the previous assurances are risk control mechanisms that have been in play from the dawn of money lending or money changing as it was originally called in the European middle ages. People do business with people. The more faithful and trustworthy people are in business transactions, the less riskier the transactions are deemed by parties involved. it's safe to say that there are people who can borrow tons of money and yet are not asked by some lenders to stake an item twice the value of the money borrowed simply because of their integrity. These customers are the holy grail in the finance world. A money lender worth his name will do anything to remain of service to such fine clients. The origin of the word client comes from the Latin word "cliens" meaning someone under the patronage or protection of another. 
4. Safe return of capital.....alongside the interest. Lastly in all considerations, this assurance is the most important. As long as the lender can vividly see or know that his capital will be guaranteed a safe return as well as a return on that risk,a borrower will always be assured of financing. plain and simple

Now much as you get into scenarios similar to asking for a pound of flesh that is closest to the heart as you deal with the various money lenders out there, those assurances are the basic judgement factors that come into play. all questions and requirements emanate from how well those four assurances are satisfied.

Once again, have a fruitful and blessed year, in the year of our lord 2020