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Do you know what Bombay is?
The Philippines has a large informal sector comprised of micro-enterprises. Many of these are severely resource-constrained small vendors operating in public markets, whose survival in business relies heavily on access to financing. This usually comes from the informal sector sector as well in the form of informal financiers called “5-6.” Two types of 5-6 financiers are found in Philippine public markets, each with a distinctive lending mechanism, Filipinos and Indians.
It is not for the borrower and the lender. I think it is not secured and doesn't seem legal for me. The security of the lender and the borrower is in too much risk in this situation. For instance, the lender is always outside and taking a certain and regular route right? Then some criminal minds out there can put up an easy plot to mug the lender because they goes outside in a routine and a regular basis. The for the contract? Is there such thing as a signed legal contract for this kind of transactions?
This is the first time that I'm to hear about Bombay and the lending activities that they do. However, from the comments that I read here, I wouldn't advise anyone to have anything to do with them in the sense that the government are against what they do.
Bombay's, they are widespread here in the Philippines. They let people borrow money especially if you have small business and even just a sari-sari store. Their scheme is known as 5-6, it means that they earned 20% interest rate from your borrowed principal amount. They collect the payments on a daily basis. They are the most fastest and easiest way of lending money, no hassle, no document requirements, no processing, just trustSmile
Bombay 5-6, a group of enterprising Indian nationals who lend money to Filipinos at 20% interest. The Bombay 5-6 offers a loan amount of Php 1,000 – 5, 000 ($22.00 – 111.00) payable within 1-3 months in a daily basis of collection, collected either in the beginning or at the end of the business day. With an average monthly income of Php 1500-2000 ($33.00 – 45.00) these vendors depend on their day-to-day capitalization from this Bombay 5-6. The borrower’s business and loan repayment history are the considerations of the Bombay 5-6 to grant loans to these vendors. In this study we will use purposive sampling and interview questionnaires to find out about the demographics, reason for loan preference and focus on the effects on clients especially with regards to whether loans enhance or worsen their economic conditions.

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