{"id":91045,"date":"2017-02-24T03:11:57","date_gmt":"2017-02-24T08:11:57","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=91045"},"modified":"2017-02-24T03:11:57","modified_gmt":"2017-02-24T08:11:57","slug":"guidelines-to-formalize-5-6-lending-out-next-month","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2017\/02\/24\/guidelines-to-formalize-5-6-lending-out-next-month\/","title":{"rendered":"Guidelines to formalize \u20185-6\u2019 lending out next month"},"content":{"rendered":"
\"The<\/a>
The government is finalizing the guidelines to formalize the \u20185-6\u2019 lending scheme and is set to release the document by March, Federation of Indian Chambers and Commerce (Philippines) Inc. (FICCI) President Rex Daryanani told reporters. (Photo: Philippine News Agency<\/a>)<\/figcaption><\/figure>\n

MANILA\u2014The government is finalizing the guidelines to formalize the \u20185-6\u2019 lending scheme and is set to release the document by March, Federation of Indian Chambers and Commerce (Philippines) Inc. (FICCI) President Rex Daryanani told reporters.<\/p>\n

Daryanani said the Department of Trade and Industry, Security and Exchange Commission (SEC), Bangko Sentral ng Pilipinas, Small Business Corp., Department of Justice, Department of Foreign Affairs, Bureau of Immigration, National Intelligence Coordinating Agency, and the Philippine National Police are crafting the guidelines.<\/p>\n

Daryanani mentioned that he already met with President Rodrigo Duterte to explain the system used by \u20185-6\u2019 lenders, a number of whom are Indians, and \u201cappealed to him to legalize the money lenders\u201d.<\/p>\n

\u201cIn the olden days, you borrow five (pesos), then you pay six (pesos). That happened in a span of one week. That\u2019s why it\u2019s called \u20185-6\u2019. It\u2019s 20 percent interest rate,\u201d he explained.<\/p>\n

\u201cThat doesn\u2019t happen now,\u201d he stressed.<\/p>\n

Under the present arrangement, the amount borrowed is payable in 60 to 120 days with a cumulative interest rate of 20 percent.<\/p>\n

He cited that if one borrows PHP10,000, he will pay PHP12,000 in four months, in effect paying the lender PHP100 per day.<\/p>\n

\u201cThat\u2019s an effective rate of 5 percent per month,\u201d Daryanani pointed out.<\/p>\n

He noted that the \u20185-6\u2019 lending scheme is attractive to micro borrowers as it does not require any document and does not give any penalty for late payment.<\/p>\n

\u201cNo documents. It\u2019s trust. Lenders give consideration if a borrower can\u2019t pay on that day. No interest, no penalty if they can\u2019t pay for that day,\u201d he explained.<\/p>\n

\u201cIf you talk about pro-poor, if you talk about poverty alleviation, with all due respect, these guys are helping the Filipinos.\u201d<\/p>\n

Moreover, Daryanani said the initial guidelines to formalize the money lenders include getting a permit for their lending business with a minimum capital of PHP1.0 million.<\/p>\n

To acquire a lending permit, one shall have at least PHP1.0 million in capital.<\/p>\n

The lenders shall also issue receipts and pay taxes to the government.<\/p>\n

Daryanani estimated that 25,000 to 30,000 money lenders are engaged in the scheme. If a lender has an initial capital of PHP1.0 million, some PHP30 billion would be circulating in the market for this lending model, he said.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA\u2014The government is finalizing the guidelines to formalize the \u20185-6\u2019 lending scheme and is set to release the document by …<\/p>\n","protected":false},"author":33,"featured_media":91047,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[15707,15706],"class_list":["post-91045","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-federation-of-indian-chambers-and-commerce-philippines-inc","tag-5-6-lending","mauthors-kris-m-crismundo","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/91045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=91045"}],"version-history":[{"count":0,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/91045\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/91047"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=91045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=91045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=91045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}