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Do you know what Bombay is?
In my country they are called Bumbay, they lend you money with interest it depends on them on how much interest they will put. Some bumbay in my country also likes to make a agreement when you did'nt pay on the said date, they will take away some things that you agreed to put in line.
This is so common in my country bombay is comes from India. If you have some financial problem you can borrow some money from them, but after 1 or 2 months you need to pay the money that you borrowed, but with interest. Before you try this think first because some most of my relatives are heavily in debt.
I think i heard of that loan.
All that I know is that these bombay loans and the people who do it are being prosecuted all over the world, because they use the 5-6 system.
The loans entail the payment of 6 for every 5 (insert currency) lent out usually after 30 days, implying an interest rate of 20 percent for a month, or about 240 percent a year.
When you compare that to most credit card companies they charge only about 2 percent a month, so that totals out to 24 percent a year.
That is a huge difference.
But it is also illegal to use that system, no wonder the loaners and the people who participate in that system are being arrested.
I have seen this one before, like almost everyday. They tend to ride on a motorcycle and they would probably talk to our neighbors as well, like about loans or lending them money. This is actually more genius that what you think, because they would just ride and go straightly at your door and done!, you have been lend some cash. But you must pay them on time as well, if not, I don't actually know what would happen.
This is a type of loan facilitated by Indians (people living in India, not the American Indians) riding in motorcycle going to loaner's house or stall sites. 5-6 means 20% interest of your capital loan. It means if you loan $5 you need to pay $6 in a month, although they go to your house every week to get any payment amount.

The interest is high because their risk is also high because there's no collateral, no contract, and no requirement. It is a plain agreement between them and the person who loans. Aside from the risk of not being paid, they also risk their lives because they do not do in depth background check of the person who loans or their financial capability to pay hence they are exposed to hold-ups, and being killed if the loaner cannot pay anymore.
here in my place these what you call Bombay are the most common money source of every starting mini grocery stores, they are men riding a motorcycle with a list on their hand or sometimes a receipt, some says they're illegal but for them i think business is still business, i think these guys are kind enough to lend money to people that they don't really know yet,i once have a grocery store and asked one of the Bombays to lend me money, its easy to have a deal with them, they don't use their real names here in my place, they use an alternative name so that they are safe,some mini grocery owners often hides from the Bombays when they don't have the money yet to pay them, my mini grocery store last for about a year with a Bombay, he became my friend not just my business partner, my contract with Bombay ended when i Fully payed him with all of my dept to him. if you encounter some of them just make sure you have the capabilities to pay them if you loan Smile .
Yes, I think almost Filipino people know the Bombay is. As a Filipino citizen, Bombay are people from India came to the Philippines and build business to help those people who have their financial problems. The business they made is they are lending money and selling different items like kitchen items in the Philippines and also we called them 5 6 here in the Philippines, if you borrow 500 pesos from them you will pay 600 pesos(include interest). The interest is 0.20% if you borrow 1000 you will pay 1200 to them and also in items if you buy (if the items is 200 pesos you will pay 240) and take note the paying method is installment. That's how it is in the Philippines, Bombay are just like any lender here but with a higher interest. As a Filipino, I don't recommend you to patronize these kind of system.
Here in the Philippines we called it 5/6 or Bombay where can you loan 500 and when your loan it became 600 that's why we called 5/6 or Bombay.

This method is really sick make Bombay make rich and more Filipinos became poor because poor.
I know Bombay thing, those are the foreigner that offer loans with high interest. They are easy to approach. And most of the small scale business owner here in Philippines are loaning to Bombays. But it is also the reasons why more small scale business are losing profit and sometimes they resulting into bankrupt. The interest of these Bombay are 10-20%, I don't know the exact number but that the range of their interest.
I heard also one time in news that the Philippine government are now banning those kind of loans with high interest and they will start an alternative new method of loaning for small scale business owner.
This is the first time that I have heard of the Bombay loan. It is a very good idea though, if there are Indians who can afford to lend then it's great that they do loan to those who need it. Sometimes banks and traditional methods of borrowing are hard to obtain.

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