Money lending and borrowing

Discussion in 'Numbers, Time, Dates and Money' started by Corzhens, Oct 1, 2019.

  1. Corzhens

    Corzhens Member

    There are informal money lenders here called 5-6 (five-six) because of the usurious interest rate of 20% which means you borrow 5 and you pay 6 hence the name. Twenty percent is beinte por ciento which is actually a Spanish term. For a smaller interest rate of 10 percent it is called diyes por ciento. Obviously you are at a disadvantage when you borrow money from such lenders.
     
  2. Alexandoy

    Alexandoy Member

    I don’t want to identify but there are foreigners of a certain country who had started that business of micro-lending. You borrow 5,000 and they give it to you immediately with no questions asked. But you have to pay the installment every day which in effect the 5,000 becomes 6,000 which is the total amount that you would pay in 1 month.
     
  3. Corzhens

    Corzhens Member

    It is a good advice not to lend money to anyone. It is better to just give when you can afford to help in providing financial assistance. Lending money can be susceptible to abuse and you wouldn’t like it. Some foreigners are being milked of money, so to speak, because of their generosity.