Thread Rating:
  • 3 Vote(s) - 3.33 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Do you know what Bombay is?
#1
Most of my neighbor have their dept from these people which they called Bombay not sure if they are Indians but they look like one. I dont know how their contract or rules work but base on what I know there is a thing called 5-6 where in you can avail a loan and the interests will be base on the 5-6 rule, (correct me if I am wrong) in every 5 loan you avail you'll have to pay it 6 or if you avail 20 you'll have to pay 24. You can pay them in installment basis for everyday or it can be twice or once a week. They will come to your house for payments as well, they don't ask any requirements they just have to know where you live so they can come to you.
Reply
#2
I have never heard off this but it sounds interesting. It’s a person to person loan with what appears to be a 20% fee. I wonder if it can be done online.
Reply
#3
A Bombay is an Indian national who lends money to small businessmen or house owners. They have helped people sustain their businesses or make both ends meet. They have been the subject of scrutiny by the government and have received public threats that they will be arrested if caught in the act of lending or collecting money from borrowers. I doubt if they can take their business online legally unless they find a way to become naturalized citizens.
Reply
#4
(01-04-2018, 03:26 PM)Camilla Wrote: A Bombay is an Indian national who lends money to small businessmen or house owners. They have helped people sustain their businesses or make both ends meet. They have been the subject of scrutiny by the government and have received public threats that they will be arrested if caught in the act of lending or collecting money from borrowers.  I doubt if they can take their business online legally unless they find a way to become naturalized citizens.

Oh! Its like I was reading an article on your comment. Smile yup! Been seeing that arguments circulating last year but up until now I am still seeing them here in our place lending money to our neighbors and for sure still around the country. They helped people with financial problems but as you have said its hard or near to impossible to take their lending business online unless its a secret transaction.

(01-04-2018, 02:46 PM)Michael Puttman Wrote: I have never heard off this but it sounds interesting. It’s a person to person loan with what appears to be a 20% fee. I wonder if it can be done online.

I don't think it can be done online since they should meet you personally and they will also have to know where you live since they are the one who will come to you to get the payment. Since they don't ask for any requirements and will give you the money you needed the soonest they are pretty indemand for those who does have finacial problem or for those with emergency.
Reply
#5
(01-04-2018, 02:06 PM)Heart Wrote:  They will come to your house for payments as well, they don't ask any requirements they just have to know where you live so they can come to you.

What if you take a huge loan, find yourself unable to pay it off and go live at another place? lol  Big Grin There will be no way for these people to find you.  Smile

This whole scheme sounds very dodgy and is absolutely illegal. Bombay lenders are prosecuted by law in many countries.

On another note, look what I found on the net: http://bombayloan.com It's not clear if their interest rate is based on the "5-6" system or they're just using the phrase to get attention. One has to apply for a loan in order to obtain their terms and conditions.
Reply
#6
Wow this whole thing sounds like what I read on the credit card forum about credit card lenders. They take money from lenders and lend that money out, and make money off of the interest from the people they're lending money to while paying off the original loan. It's interesting to note it's there at least but I don't think I'd get mixed up in that kind of thing ever. Pretty interesting to read about though. Also very stereotypical of the region it originates from as well, even though those guys are just trying to cut a living for themselves, it's still a bad way to do it.
Reply
#7
I have no knowledge of Bombay, this is infact the first time am hearing of it, and funny enough.it interest me. Just like someone stated above, I think their operations can be termed person to person loan. We have such here in my country and they really are effective and reliable. They also don't ask for any collateral before given out funds, all they require is to know your place of residence, in some cases they don't even bother to come and check out your place depending on the amount of loan you requested. I think this types of loan system are very commendable especially for people who can't secure loans from more professional lenders due to some certain elligibility.
Reply
#8
I think 5-6 is now illegal. It's not only the Bombay doing the business but also the citizen of the country. They're copying the business of Bombay because it's actually a good income, imagine if people owe you then you'll be receiving 20% of it that's kind of huge amount. Instead of saving your money to banks they will use it for 5-6 so you will gain more profit. The government mandated that no one should do 5-6 because it gives burden to those borrowers for giving too much interest I think based on the law lenders should give at least 10% interest I'm not sure but if you're giving too much interest it's actually illegal. That's why the government gave a warning for those doing business like 5-6. I'm not sure if it's already implemented but they already relay the message to the public and all over the news.
Reply
#9
I am familiar with these people they call Bombays because I live in the country where it is most popular. Although I have heard about them, I really don't know how "5-6" works. The only thing I know is that they're Indian nationals who have the means to lend money to earn profits from. They're very popular here since a large portion of the population depends on loans to keep themselves alive and breathing. With the legality set aside, It's still something you can do at your own risk for a last resort option.
Reply
#10
I don't think these are being offered in this country. I would be hesitant to sign up with any lending company where I didn't fully understand the rules. It is one of the things that you might wish to look at thoroughly before committing to it.
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)