pósito

A pósito, also known as a monte de piedad or loan bank, is a type of charitable financial institution that provides loans, often at low interest rates, against collateral. These institutions originated in Spain during the 15th century and were established by religious orders or public authorities with the primary aim of combating usury and offering financial assistance to the poor and needy.

The core principle of a pósito is to lend money using movable goods or even real estate as security. When a borrower pledges an item, they receive a loan. If the loan is repaid with interest within a specified period, the collateral is returned. However, if the borrower defaults, the pósito can sell the pledged item to recover the loan amount. This system provided a vital safety net for individuals facing temporary financial hardship, preventing them from falling into the hands of exploitative lenders.

Over centuries, the concept of the pósito evolved. While their charitable origins remained important, they also became more formalized financial entities. In modern times, many traditional pósitos have either transformed into savings banks, cooperative banks, or have been integrated into the broader financial sector. However, the legacy of the pósito as an institution dedicated to providing accessible credit and financial support, particularly to vulnerable populations, continues to be recognized. The term "pósito" itself can also refer to the place where these loans were administered or the collective fund from which loans were made.