Personal and Business-Related Factors associated with Loan Shark Availment of Public Market Vendors of Passi City
Personal and Business-Related Factors associated with Loan Shark Availment of Public Market Vendors of Passi City
Carimah Jane Ambata
Quenne Rose Buenavista
Andrea Duran
Emelyn Ordejan
Keziah Sondia
Hyacinth Tabares
Jecelle Testigo
Shane Eunice Yap
CHAPTER 1
Background of the Study
Loan Sharking is the practice of lending money to desperate people at extremely high and illegal rates of interest. An American author, Rolf Nugent says that the business appears to have begun in cities of the Middle West shortly after the end of the Civil War. The huge profits of the earliest offices were reinvested in additional offices in neighboring cities. Employees of these chain companies left to establish their own offices as soon as they had accumulated or could raise the small initial capital that was needed. The observable prosperity of the business attracted other lenders, and so, loan shark offices soon spread to all major cities throughout the United States and other countries. A Loan Shark is an individual or organization that loans money at extraordinary high rates typically above the legal interest rate. In the Philippines, loan sharks are usually Indians from South Asia, popularly known as “Bombay 5-6”. They belong to the two Indian communities overseas, the Sindhi and Sikh. Majority of them were from the Sikh community, which is said to have copied the money lending business from the Sindhis. The business is termed as 5-6 or “six-for-five” because, for borrowing an amount of five, the return is six at the end of the week. Filipinos often believe that many Indians in the Philippines are in the 5-6 business, and the words 5-6 and “Bombay” are frequently used interchangeably to point out people of South Asian origin. Bombays usually target public market vendors knowing that these vendors desperately need money for everyday needs. In Passi City Public Market, 5 to 10 Bombays are actively engaging in this lending business. Much
Carimah Jane Ambata
Quenne Rose Buenavista
Andrea Duran
Emelyn Ordejan
Keziah Sondia
Hyacinth Tabares
Jecelle Testigo
Shane Eunice Yap
CHAPTER 1
Background of the Study
Loan Sharking is the practice of lending money to desperate people at extremely high and illegal rates of interest. An American author, Rolf Nugent says that the business appears to have begun in cities of the Middle West shortly after the end of the Civil War. The huge profits of the earliest offices were reinvested in additional offices in neighboring cities. Employees of these chain companies left to establish their own offices as soon as they had accumulated or could raise the small initial capital that was needed. The observable prosperity of the business attracted other lenders, and so, loan shark offices soon spread to all major cities throughout the United States and other countries. A Loan Shark is an individual or organization that loans money at extraordinary high rates typically above the legal interest rate. In the Philippines, loan sharks are usually Indians from South Asia, popularly known as “Bombay 5-6”. They belong to the two Indian communities overseas, the Sindhi and Sikh. Majority of them were from the Sikh community, which is said to have copied the money lending business from the Sindhis. The business is termed as 5-6 or “six-for-five” because, for borrowing an amount of five, the return is six at the end of the week. Filipinos often believe that many Indians in the Philippines are in the 5-6 business, and the words 5-6 and “Bombay” are frequently used interchangeably to point out people of South Asian origin. Bombays usually target public market vendors knowing that these vendors desperately need money for everyday needs. In Passi City Public Market, 5 to 10 Bombays are actively engaging in this lending business. Much