We need a loan every time we face a situation where we can not meet the ends and we need some kind of financial injection that will cure the problem especially in emergencies, getting a loan can really help and once the emergency is over, repaying that loan never feels like a burden.
The origin of credit dates back to the early 1950s in India and early 1960s in East Africa when cooperatives societies used to give loans to their members (Dewees 1993, Pulley 1989). The management and repayments of these loans were tied to the sales of the borrowers' produce, which used to be done through the societies. In !he late 1960s and early 1970s because of the rampant poverty in less developed countries (LDCs), it was realized that credit should be extended to majority of the rural people who could invest so that there can be growth with social justice (Goila 1993; Pulley 1989). Government in LDCs therefore initiated subsidized loan programmes. These programmes failed among others to reach their target, the poor and in loan repayment. The Cooperative Society Loans did not have a good management and recovery history either.