Commerce Exam  >  Commerce Questions  >  Who provide loan for trade in ancient india? Start Learning for Free
Who provide loan for trade in ancient india?
Most Upvoted Answer
Who provide loan for trade in ancient india?
There are four options
1=government
2=intermediaries
3=both 1and 2
4=none of these
Community Answer
Who provide loan for trade in ancient india?
Introduction:
In ancient India, trade was a significant part of the economy, and loans played a crucial role in facilitating this trade. Various individuals and institutions provided loans for trade purposes, enabling merchants to finance their ventures and ensure the smooth flow of goods and services across regions.

Key Providers of Loans for Trade:
1. Moneylenders: Moneylenders formed a significant source of loans for trade in ancient India. They were individuals who had surplus capital and lent it to traders in exchange for interest. Moneylenders were prevalent in trading centers and acted as intermediaries between traders and suppliers, providing short-term loans to facilitate trade transactions.

2. Merchant Guilds: Merchant guilds were associations of traders who engaged in the same line of business. These guilds were responsible for organizing trade activities, promoting fair practices, and providing financial assistance to their members. They often maintained a common fund from which members could borrow money for trade purposes.

3. Shroffs: Shroffs were a group of bankers who specialized in providing financial services, including loans, to traders. They maintained accounts, facilitated transactions, and extended credit to merchants. Shroffs were trusted entities and played a crucial role in financing trade activities.

4. Temple Banks: Temples in ancient India often served as centers of economic activity. They accumulated vast wealth through donations and offerings from devotees. Temple banks utilized these resources to provide loans to traders, acting as financial intermediaries. They played a significant role in promoting trade and commerce.

5. Foreign Traders: Ancient India had extensive trade connections with various foreign regions, such as the Roman Empire, China, and Southeast Asia. Foreign traders often provided loans to Indian merchants, especially for long-distance trade ventures. These loans helped facilitate cross-border trade and fostered economic relations between different civilizations.

Conclusion:
In ancient India, loans for trade were primarily provided by moneylenders, merchant guilds, shroffs, temple banks, and foreign traders. These institutions and individuals played a crucial role in financing trade activities and ensuring the smooth flow of goods and services. The availability of loans facilitated economic growth, encouraged trade relationships, and contributed to the overall development of ancient Indian commerce.
Explore Courses for Commerce exam

Top Courses for Commerce

Who provide loan for trade in ancient india?
Question Description
Who provide loan for trade in ancient india? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Who provide loan for trade in ancient india? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Who provide loan for trade in ancient india?.
Solutions for Who provide loan for trade in ancient india? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Who provide loan for trade in ancient india? defined & explained in the simplest way possible. Besides giving the explanation of Who provide loan for trade in ancient india?, a detailed solution for Who provide loan for trade in ancient india? has been provided alongside types of Who provide loan for trade in ancient india? theory, EduRev gives you an ample number of questions to practice Who provide loan for trade in ancient india? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev