President Rodrigo Duterte ordered the arrest and possible deportation of people who engage in the infamous moneylending scheme known as "5-6". The scheme traditionally involves an Indian national lending money to those who are in need, usually for a very high interest.
They usually impose 20% monthly interest on a loan. It became unpopular because it brought hardships to the borrowers, mostly Filipinos, because of the large interest rate.
Although the usury law is not effective now in the country, the Supreme Court has ruled that moneylenders like them cannot impose unconscionable and unfamiliar interest rates to people.
Agriculture Secretary Manny Piñol shared in his Facebook post that the Department of Trade and Industry (DTI) has designed a loan scheme that will charge borrowers with 20% interest per year which could be payable in one year.
DTI Secretary Ramon Lopez said that the 5-6 lending scheme became prominent in the country because government lending institutions are unable to give easy access for small borrowers who are in need of money.
President Duterte has already ordered Foreign Affairs Secretary Perfecto Yasay, Jr. to inform the Indian Embassy in Manila about the government’s plan to put an end to the business that made Indians richer with their money lending scheme.
Source: TNP , Kickerdaily
President Duterte Orders '5-6 Bumbays' To Be Deported And Issued 1 Billion Pesos For Micro-Lending To Small Borrowers!
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