Living a carefree life is not easy. For a better living three of the most important factors are food, clothes and a shelter. Earlier these were available at a reasonable cost. Now the prices have hiked so much that a person with low income profile finds it a bit burdensome to afford these things. Everyone wants luxurious along with restful life. They don’t want hassle of things to be done every day. The technology has also advanced now a days that by using some of the already existing machines one can do his/her work in less amount of time. The invention of an AC, TV, Food processor, Washing machine, mobile phones, etc. have made people crazy. For availing all these facilities at their home, they have to work more to earn more money.
Money is simply an item that is accepted as a mode of payment in exchange of a good or a service. It is very important to have a reasonable amount of it in order to make living easy and buy all comforts in life.
Poverty is a serious issue. It is a state when someone lacks a reasonable amount of money.
The prevailing poverty and a desire to buy comforts have made people get money on loans or simply personal loans. Loans are given on a periodic basis and interest is charged for the given amount as per the decided interest rate.
A Money lender is a person who can offer such personal loans to the person in need. A money lender can also be a firm or a group of people. They accept something as a mortgage for the amount they are providing as loan. The loans provided are charged with higher interest rates. The higher interest rates are due to some risk factors involved. The process of lending is much different from that of a bank or any financial institution.
They are more popular in villages or in localities where less number of banking facilities are available. It is because they can earn profit in such a way. People like gamblers and shopping addicts are attracted by such facilities of money lending.
Most of the countries have imposed certain laws for the money lenders to be registered. The interest rates that will be charged are also decided by laws only. In India, the Money Lenders Act of respective state governs the activities of money lenders in that state.
Some of the money lenders often use illegal means to recover the money they have granted. This is a serious issue and laws should be made to eradicate this.
Money lenders play an important role as they help the needy people at their time of difficulty by helping them financially.