In the beginning of this essay I want to explain in a few words what

means loan. Etymological, the loan has its origins in the Latin word "
creditum - loans " which means to believe , TO TRUST
Throughout time this notion and practice evolved to a very complex
system, and this days the loan is the operation which take immediate
possession resources in exchange for promises of future refund , normally
accompanied by payment of interest that remunerates the lender. By
offering access to liquidity of any company , regardless of legal status ,
loan contributes to the development of small and medium companies
often engines of innovation, promoting competition with its beneficial
effects on economic growth, the balance in general.
Today the availability for a loan is very high and the time to get one is
very short, in special for consumers loan, I personally can say because
during our short visit to one of the most important bank from Serbia,
having the required documents, I could get a car loan of 7000euros just in
10 days. We see banks behaviour change during the time if before it was
a credit culture nowadays we call sales culture because almost all the
banks want to maximize the profit and how it can be done? The answer is
to sold as many its possible, by reducing the scoring system or simply
granting and having a proper identification.
This consumer loan they have a maturity beteen 5-7 years, so it is a short
term loan that's why the loans have a hight interest rate. The perfect
method to sell fast the loans was an aggressive advertising which in Estern
Europe, countries from Africa, south America, become typical and this
advertising they were did to misleading the consumers by saying the loan
offer is 0% and live now your life consume now not tomorrow. And
consumer leading requires little in the way of banking skills and has
limited economic impact . Provided with such misleading marketing and
negligent underwriting, credit can plunge people to poverty. The Gpd
reports show that in Estern Europe 80% of the debt is in the short term
consumers loan, so here the poverty risk reached a worrying level.