“A Research Study about Private Lenders of San Jose City “
Sociology105
Thalia ! Roldan A"SS #$1
C%APT&R ' 'ntroduction
The roots of lending can be traced traced back to the roots of civilization civilization itself. The written loan contracts from Mesopotamia that are more than 3,000 years old showed the development of a credit credit system system that that includ included ed the concept concept of intere interest. st. Loans Loans are very simple simple contrac contracts ts with with remarkable properties. ne person lends something to another with the promise that it will be repaid in the future. The borrower suddenly has wealth, while the lender takes current wealth and places it in the contractual e!uivalent of a time machine in order to transfer it to a future date when he might better use it. "or doing so, the lender is compensated with interest that makes him better off than in the present. #uring these hard times, a lot of people would seek the help of those engaged in moneylending business. $t%s a way to help support their families, to support financial needs of micro&entrepreneurs and to ease poverty. $nformal money lenders are money lenders who are not licensed to do money lending business. They are also called '(&) money lenders* and are well known known about about this this kind kind of inform informal al lendin lending g busine business ss which which is patron patronize ized d by some some micro& micro& entrepreneurs and people who wants to put&up a new business in urban areas. '(&)* is the term used in such a reason that they lend money. Micro&entrepreneurs are the most patronizing party in this form of business because they are the ones who are in needs of financial capital for the daily financing activities of their businesses. $n order for us to understand and give us the idea why do they are more preferred to borrow in +ombay than other formal institutions, the selected researchers wish to understand and measure the effects of this form of business to them, the advantages and the disadvantages. $n order to find ways in understanding the behavior of micro& entrepreneurs and to identify and recommend solution for the problem encountered between informal money lenders and micro&entrepreneurs. $%m sure a lot of you out there have heard of the 'pautang* from the +ombay who carries around a 'payong* and rides a motorcycle. +ut how many of you really know how it works (-) simply stated is you borrowing (.00 and you have to repay at ).00. This is effectively /0 interest. The regular term is 1 month but some may be as short as 1 week. 2ome lenders offer easy payment scheme of /0.00 per day for 30 days for every (00.00 pesos loan. This is why
so many "ilipinos get tempted to borrow money with such an easy payment term. $t is easy and simply no paper works to fill&up compared to the banks or lending institutions. There are both good and bad sides to this. "irstly, in annual terms, the interest is /0 times 1/ months which e!uals to /0 meaning if you borrowed 1,000.00 you pay back the amount of /,00.00 plus 1,000.00 principal in one year. 4o wonder why so many '+ombays* go into this business. $t%s so lucrative. More than triple your money in a year. 5ou really have to use the money properly otherwise you will end up in deep trouble. n the other hand, this is the only financial assistance small time business people in the wet markets, or sari&sari store can get e6tra capital. $f used properly, these small time businessmen can actually turn&around the cash and make some profit until they can sustain and grow their business. Try asking the sellers in the 'palengke* and they will say that indeed these '+ombays* have actually helped them in their business. 2o while there is still demand for (-), this will still continue for the years to come. Lending or 'pautang* has been one of the ma7or businesses producing income of the $ndian community here in the hilippines. The term '(&)* has been tagged to a person who lends money, which is also commonly called '+ombay*89n $ndian national, typically wearing a pagri or turban wrapped around the head, and riding on a motorbike, or sometimes walking with umbrella. The practice of '(&)* has been around since the early :0s; but it was not !uite popular 8not until the usury law was made legally ine6istent. The underground practice of (&) seemed like gossip that only busybodies carry like disease to their immediate neighbors. +ut when the fangs of the usury law were minified, (&) became nationally popularized not only to rural areas but to the urban places as well. The practice of (&) lending was accepted to the e6tent of being part of 'pinoy culture*. 9s a developing country, the hilippines 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 '(&).* Two types of (&) financiers are found in hilippine public markets, each with a distinctive lending mechanism, "ilipinos and $ndians.
This paper considers the implications of having different financiers contribute to the development of micro&enterprises. $ discuss "ilipinos, but give central attention to $ndian financiers for several reasons. "irst, regarded as last resource lenders, this group is crucial to the most marginalized micro&entrepreneurs. 2econd, a part of their lending money flows in from $ndia through informal channels, !uite an interesting phenomenon in this part of the world. 9nd third, despite their importance to hilippine micro&enterprises, little has been written about their financing practices. 2ince their purpose was to grasp the concept of both formal and informal micro&financing institutions for the purpose of macro policy formulation, differences across institutions by ethnicity were not highlighted. 9s a result, although $ndian financiers are widely known among "ilipinos, studies regarding their business practices are virtually non& e6istent.
(arious Ty)es of Lending
9side from the 'usurious* /0 interest, there are other modes of payment a lender has to choose from. *i+ interest
"i6 interest is the interest a lender puts on the amount borrowed. This is the most common form of method that many private lenders practice. #epending on the amount to be borrowed, the lender and the borrower usually make verbal agreement on how long would it take for the loan to be paid. 9s an e6ample, the borrower borrows 1,000 and promise to pay it within a period of ( days. The lender can give an option of daily, weekly, or full&payment method scheme8+ombays always opt to collect daily, for whatever reason, it%s more convenient for them. ,i-inishing interest
This payment method is similar to a credit card payment scheme where the outstanding balance will accrue interest until the balance is not fully paid. $t will take seven months for the borrower to settle his-her debt should he-she chooses to stick with 300 per month. The lender will be accumulating =0=.1 interests in seven months. This can be avoided if, however, the borrower with settle the debt not more than two months. 'ncre-ental interest
This kind of payment scheme forces the borrower to settle his-her debt as soon as possible to avoid paying double the amount of what he-she borrowed. This will secure the lender continuous profit while the principal >money? is in the borrowers% possession. The lender could start with 3 interest and increments 1 every month. Recurring interest
@ecurring interest are often practiced in both public and private offices where the lender will collect the agreed interest until the lender has not paid his-her debt in outright payment. utright payment means the lender will not accept installment payment but rather chooses to receive the lent money in full. This is similar to a pawnshop method of pawning.
State-ent of the Proble-
$n order to state the whole coverage of the study, researcher formulates problems related to the effectiveness of informal money lenders, especially the so&called '(&)*. $t will pave the way to gathering data and analysis of data gathered about the said topic. The stated problem will be the guide of this study. eneral Proble-.
The main purpose of the study is to determine the nature of lending or the so&called (&) in 2an Aose Bity. S)ecific Proble-s.
2pecifically it sought to answer the following sub problemsC 1. Dhat is the demographic profile of the respondents /. Dhat is the amount that can be borrowed from informal money lenders 3. Dhat is the most common reason why do micro&entrepreneurs borrowing money from them . Dhat are the terms and conditions applied who borrowed money from the informal money lenders (. Dhat are the advantages and the disadvantages on the part of the lender
Sociology behind /oney
$t is impossible to understand Deber%s sociology without understanding the theme of 'the tragedy of culture* in the sociology of Eeorge 2immel, particularly in his study of the growth of e6change and money where he provided a model of the development of social abstraction. $n an indirect fashion, Deber%s view of legal abstraction can be seen as a particular application of 2immers account of the growing abstraction of money as the symbol and effect of abstract social relations. "or 2immel, the use of paper money is the measure of the growth of abstract, formal, social relations which are increasingly sub7ect to calculation, and indeed produced by universalistic e6change relations. The history of money as a medium e6change is the history of its divorce from any immediate, tangible value. #irect barter gave way to leather money, leather money gave way to paper money, and paper money was replaced by the bank card. The growth of che!ues, credit notes, and bank cards represents the growing indifference of social e6change to the particular, personal characteristics of economic agents. Bonfidence in money presupposes the e6pansion of social relations based on impersonal trust with banking of the state. The sphere of money is the entire sphere of social relations, or more precisely the sphere of the public, rational domain of social interaction. Dhile money creates and e6presses these social relations of stable e6change, it is also a measure of human alienation. $t represents tragically the separation of the content and form of human actions. Money is in 2immers analysis the reification of the pure association between things as e6pressed in their economic character. Thus, human individuality and human agency become congealed and fi6ed in abstract money relations. Money as a reliable measure of value becomes the vehicle of intellectualization, calculation, rationalization, and reification. Money thus comes to represent instrumental reason in a direct form. $n particular, money as primarily a means of e6change becomes an end in itself F in fact, the end of human actions. Dith the rise of a positivist science of economic, moral values and economic activities become in principle, and to a large measure in practice, separated. The e6tent of that separation must be opened to empirical in!uiry rather than outright condemnation.
Deber%s sociology of law can be seen as an adaptation and application of 2immel%s sociology of money to the 7uridical arena. Law is one of the prime manifestations of the growing rationality and intellectuality if social relations, providing a reified shell of calculated stability for economic processes. Law, money and the market&place become measures of both alienation and of individual freedom from the unpredictable world of primitive e6change. Money and law measures both civilization and alienation. This social stability is therefore bought at a cost; namely, that all substantive !uestions of 7ustice have to be s!ueezed into the precise mechanism of formal&rational law. The !uest for legal stability is no longer merely a means to achieve comparable legal decision making and instead becomes an end in itself.
Theoretical *ra-eor
9ccording to Mari Gondo, the hilippines as a developing country have a large informal sector comprised of micro&enterprises. Many of these are severely restricted small vendors operating in public markets, whose survival in business relies heavily on access to financing. This usually comes from the informal sector is called '(&).* because of the manner in which they lend, 'which charge a nominal interest rate of /0 over an agreed period of time. 9 person who borrows ( pesos from a '(&)*over a period of one week repays ) pesos, including 1 peso interest. There are two types of (&) financiers found in hilippine public market they are "ilipino and $ndians >+ombay? '(&)* money lenders that re!uire collateral or documents from their borrowers. The success of the borrower%s business and loan repayment history provide a gauge of the borrower%s credibility. "ive&2i6 money lenders undertake daily collections of payment in the morning, afternoon or both. 9 client%s daily payment is determined by the sum of the principal borrowed plus its /0 nominal interest divided by the credit term. The loan arrangement is fle6ible; if the clients fails to pay one day, it is understood that he or she will pay for the day missed the ne6t time around. The theory of Mari Gondo will guide and lead in answering the formulated problems that they encounter and to know the strength, weakness, opportunity and threats in the research which is all about the micro&entrepreneurs and informal money lenders who provides their financial needs.
Private lenders over bans
There are a lot of small businessmen who are opting for private lenders over reputable banks because private lenders do not ask for legal documents8small time entrepreneurs don%t want the hassles of filling out applications, only to find out they are not eligible to have a bank loan. Harious documents re!uisites serve as stumbling blocks for our less educated kababayans not to borrow money from lending institutions and rather approach the most approachable but strict looking, savior&of&the&day, +ombay. Their scents have become a palatable delight in the borrowers% sense of smell. h, let me rephrase my statement, it%s the +ombay who will approach you, for your convenience, and will give an irresistible offerC 'Dant to borrow money #aily installment is /0 pesos only?.
Significance
To the 2ocial 2cience studentsC This may help to understand the sociology behind lending business To the +usiness studentsC This will give information that can serve as their source of information on the strength and weaknesses and in developing the strategy about money lending
To the Money borrowersC This will help them look into possible situations that may guide them in deciding whenever they borrow money To olitical 2cience studentsC To know some laws behind lending money
Advantages of -oney lenders
•
They usually provide short&term finance of small loans & which is ideally suited to low& income groups, who cannot digestI larger loans, and do not prefer long&term commitments.
•
They provide loans to borrowers e6peditiously and in a fle6ible manner, thus making finance available immediately, when it is needed and with a minimum amount of paper& work and official re!uirements.
•
They function in close physical pro6imity to the borrower, enabling fre!uent contact and thus dispensing the need for collateral re!uirements.
•
They do not have fi6ed business hours, and therefore provide loans as and when re!uests are made.
,isadvantages of -oney lenders •
They are unorganized and do not have any contact with other sections of the banking industry
•
They combine money lending with trading and commission activities and thus introduce risk into their business.
•
They do not distinguish between short&term and long&term finance and also in the purpose of the loans.
•
They follow traditional methods of keeping accounts and do not give receipts in most cases.
•
They charge high rates of interest in proportion to banking institutions.
Relationshi) ith "ans •
Money lenders play a useful role in providing credit loans to sectors not supported by commercial banks.
•
Money lenders may borrow from commercial banks during high demand for credit, by using bills of e6change or their own funds as security.
2ey '-)lications of /oney Lenders •
Bredit provided by money lenders is timely & that is, it is available immediately when
•
it is most needed & need for !uick-timely credit. They do not maintain regular business hours, and usually work throughout the day &
•
thus making themselves available to borrowers at any time & fle6ible business hours. They live or work close to the residences and work places of their borrowers, and are hence easily accessible & close physical-psychological pro6imity.
The don side of lending
$t is very clear in The Law of the hilippinesC 2ection /. 4o person shall be imprisoned for debt or non&payment of a poll ta6. +ecause of this prevailing law, many lenders don%t have security over the money they lent. $n fact, the lender himself might be the one to go to 7ail by committing Light Boercion that is stated in the @evised enal Bode. 9rt. /=:. The only way a lender can legally claim something from a delin!uent borrower is if he has a Bourt rder that is called Drit of J6ecution. +ut this is a tedious process, and sometimes to the disadvantage of the complaining party. Dhat a lender can do to avoid this kind of scenario is to get collaterals from the borrower as a security for his-her money. 2ometimes agreement between the lender and the borrower are put down in paper for legal purposes. There are now small court claims which a lender can file against the offending party and documents or p roof are highly needed. Article 34 of the Revised Penal Code reads.
9rt. /=:. Light coercions. F 9ny person, who by means of violence, shall seize anything belonging to his debtor for the purpose of applying the same to the payment of the debt, shall suffer the penalty of arresto mayor in its minimum period and a fine e!uivalent to the value of the thing, but in no case less than :( pesos. 9ny other coercions or un7ust ve6ations shall be punished by arresto menor or a fine ranging from ( to /00 pesos, or both. The second paragraph of the 9rticle is broad enough to include any human conduct which, although not productive of some physical or material harm, could un7ustifiably annoy or ve6 an innocent person. Bompulsion or restraint need not be alleged in the $nformation, for the crime of un7ust ve6ation may e6ist without compulsion or restraint. Kowever, in un7ust ve6ation, being a felony by dolo, malice is an inherent element of the crime. Eood faith is a good defense to a charge for un7ust ve6ation because good faith negates malice. The paramount !uestion to be considered is whether the offender%s act caused annoyance, irritation, torment, distress or disturbance to the mind of the person to whom it is directed. The main purpose of the law penalizing coercion and un7ust ve6ation is precisely to enforce the principle that no person may take the law into his hands and that our government is one of law, not of men. $t is unlawful for any person to take into his own hands the administration of 7ustice.
Conclusion
+ased on the accumulated and interpreted data given by the respondents using the !uestionnaires on the above mentioned study, the researcher found out that money lending business is not a good source of capital in starting and on supporting the day to day activities of the business. Through data that have given by selected respondents, the most reasons why do micro&entrepreneurs and other businesses are borrowing money from informal money lenders or'(&)* is that they have no other choice in borrowing money. $t is easy to borrow money from informal money lenders. $n terms of interest rate, informal money lenders are having higher interest rate compared to the banks and other formal institutions. The researcher also found out that it is easy to borrow money from informal mone y lenders even if proper agreement. Reco--endations
Dhen starting&up a business, micro&entrepreneurs should avoid borrowing from informal money lending business. +ased on the study, chances of not being able to roll& over the cash for working capital are very high because interests paid to informal money lenders eats up most of the proceeds of the business. 2till the best way to start a business is to use one%s own capital. +ecause you will not be paying high interest in loan from the revenue generated by your business and you will be having the chance of big income of profit. Money lending business plays an important role in the hilippine economy because being the one who infuses capital to micro& entrepreneurs; it helps the country in reducing unemployment rate.
C%APT&R '' Related Studies and Literature
This Bhapter presents the current study into the conte6t of previous related research. $t deals with the @elated Literature and 2tudies which are great help to the researcher in carrying out the study. 9s a developing country, the hilippines have a large informal sector comprised of micro&enterprises. Many of these are severely restricted small vendors operating in public markets, whose survival in business relies heavily on access to financing. This usually comes from the informal sector is called '(&).* because of the manner in which they lend, 'which charge a nominal interest rate of /0 over an agreed period of time. 9 person who borrows (pesos from a '(&)*over a period of one week repays ) pesos, including 1 peso interest. There are two types of (&) financiers found in hilippine public market they are "ilipino and $ndians >+ombay? '(&)* money lenders that re!uire collateral or documents from their borrowers. The success of the borrower%s business and loan repayment history provide a gauge of the borrower 'credibility. "ive&2i6 money lenders undertake daily collections of payment in the morning, afternoon or both. 9 client%s daily payment is determined by the sum of the principal borrowed plus its /0 nominal interest divided by the credit term. The loan arrangement is fle6ible; if the clients fails to pay one day, it is understood that he or she will pay for the day missed the ne6t time around.>Mari Gondo? *The effectiveness of informal money lenders to the micro-entrepreneurs determined if they rely heavily in borrowing money. But accurate result must show in order to approve this.
9lthough the business of micro&enterprises in the hilippines varies, this study focuses on vendors and the informal financiers catering to them in the public markets. The following types of vendor are states belowC •
9mbulant vendors F it is the poorest vendor in the public market; they sell smoked fish, vegetables, fish balls, etc. They unable to buy or rent the stall, they market their food
•
along the sidewalks. @olling store vendors F they sell foods, dresses, or shoes in a customized vehicle, eliminating the need to rent a stall. They occupy spaces at the back of public market
•
together with the other vendors. 2tall vendors F are re!uired to be residents of the place where the market is and pay 1(, 000 per stall annually. $f the vendors are not genuine residents, they will pay /0, 000 annually to the stall owner.
Dulan stated in his study that informal money lending, informal credit in supply of formal credit in developing countries. #espite an increase in supply of formal credit in rural areas, informal lenders remain the dominant source of credit for the poorest households. $mprovements of productivity are important in the development process. roductive investment re!uires funding and access to credit is crucial for the purpose. Bredit might also be a mean tide over bad time caused by sudden illness or an upcoming wedding for poor individuals. revious studies of the informal credit market demonstrate e6tremely high informal interest rates charged on loans to poor individual order to make policies that can positively affect poor people%s living conditions; we must understand how informal lenders set the interest rates. 4orunn Kaugen found in their study that village lenders in 4epal lend only to individuals whom they know well. This indicates that village lenders know a potential borrowers risk types and we assume that screening problems for village lenders are largely solved by personalized relationships and interlink ages between markets. De suppose that village lenders do not face any significant screening costs. +oth village and market lenders were active in all villages we visited. Market lenders who are not involved in local trade or village activities lack firsthand information about potential borrowers credibility. ‟
These lenders solve the screening problem by for e6ample using local middlemen, traditional screening methods or written contracts. The market lenders use of written contracts ‟
and the village lenders criteria for providing loans indicate that there are information problems ‟
in these credit markets. Kowever, the village lenders are b etter informed about certain people and these therefore prefer to lend to one of these. The market lenders that are not involved in any trade or other business in a village are e!ually uninformed about all the potential borrowers in the village and have to use other means to overcome the information problems like traditional screening methods, collateral, written contracts or middlemen. ** The informal money lenders remains dominant, whenever the borrowers need then they always there to lend money. The study shows that we see money lenders in different places and it is an opportunity to conduct a study that will help to the micro- entrepreneurs. ** building relationship between the informal money lenders and borrowers will gain trust and loyalty. This is one of the factors also, why some of informal money lenders had a flexible operation.
Manny Banto stated on his article entitled '$n #epth* that 'it is an open secret that these $ndian 4ationals are doing business all over the hilippines and their business is within the ambit of economy. 9ccording to his research '
Eodofredo @ompers in his 2un 2tar comment on ta6ing '(&)* lenders. Ke states that 'money lending among those whom the banks, would never e6tend a loan to, and those who believe borrowings from the banks is a lot of paper work and red tape, is a highly lucrative business operation, able it a lot of hard work, sacrifice and patience. $nterest, $ think it is well worth their sacrifice and patience. This kind of lending that is all over the rural areas is operated only by the so& called '+ombay* or the $ndian 4ationals. *** Indians or the Bombay’s originate the informal money lending in the hilippines. They are the one who started it and some of the !ilipino impersonated it. That is there are two type of informal money lenders exist in this country.
*** "ne of the reasons why most of the micro-entrepreneurs preferred to borrow money from informal money lenders is a lot paper wor#s. It ta#es time to entrepreneurs who want a started capital of less $%, %%% for his&her business. 'ome of them are belong to the below poverty lines.
The Ereat Ereek hilosopher 9ristotle has openly e6pressed his opposition against Money Lending on interest. Ke saysC 'Money maybe a useful instrument of e6change but when it tempts people to pile up unused gains or accumulate wealth by lending money, it is sterile or unproductive and it promotes disparity in riches and financial irregularities.* Jugine Matura from Gigali in her write up about informal money lending stated that this illegal money lending has high side effects because it affects property and individual%s security as well as crippling the nation%s economy*. **** (oney will become useful if it will use in a productive way that will produce wealth li#e invest it for the business. **** roviding a capital for the micro-entrepreneurs is a good idea for creating a self-employed )ob. But paying bac# the money with a high interest can’t circulate the flow of the benefits. ffectiveness of this business will be shown if they have a big impact to the economy and micro-entrepreneurs in a good way.
LegendC & Local study & "oreign study
& Local literature & "oreign literature
C%APT&R ''' Research /ethodology
The researcher used the most common type of !ualitative research which is interview. The respondents of this study are the private lenders of 2an Aose Bity who are "ilipinos and $ndians. The target population of this study consisted of 30 selected private lenders who engage in informal lending business. Jvery registered private lender had the chance to be selected on the survey through simple random selection. The sampling techni!ue or procedure used by the researcher is simple random sampling. This was used to select number of individuals to be part of the sample size wherein the researcher selected those individuals or respondents who are engage in lending money, especially the so&called '(&)*. The researcher made some !uestions and conducts an interview for gather information for this study. The researcher used the arbitrary scale to prove a verbal interpretation to the scores being calculatedC (&.(1 F 2trongly 9gree .(0&3.(1 F 9gree 3.(0&/.(1 F #isagree /.(0&1.(1 F 2trongly #isagree 1.(0&.(0 F 4ot 9pplicable
C%APT&R '( 'nter)retation and Analysis of ,ata Table 1! Se+ of the Private Lender Se+ Res)ondents Percentage /ale 10 33.33 *e-ale /0 )).): 30 100 Total The table shows that there are more female lenders >)).):? than the male lenders
>33.33?.
Table 3! 6ationality of the )rivate lender 6ationality Res)ondents Percentage /1 :0 *ili)ino N 30 'ndian7Paistani Total 30 100 The table shows that there are more "ilipinos who engage in private lending than $ndians.
Table #! Reasons of borroing Category
8eighted /ean
Result
1. Bapital for the business
3.0:
#isagree
/. Jveryday e6pense of the
/.:3
#isagree
business
3. Lack of Gnowledge about
/./3
2trongly #isagree
the +ank Loan . 4o enough collateral to loan
/.::
#isagree
from a bank (. 2imple procedure of
/.=1
#isagree
borrowing ). 2imple negotiation with the
/./
2trongly #isagree
leaders :. #aily 9llowance for family
3.0
#isagree
e6penses Total
/.:/
#isagree
This table shows the reason of the micro&entrepreneurs in borrowing money from an informal money lender. The capital for the business as reason show 3.0: in weighted mean which means they are disagree. /.:3 is also disagree as everyday e6penses of the business, lack of knowledge about the bank loan agreement as reason is strongly disagree that has a weighted mean of /./3, the reason of no enough collateral to loan from bank has a weighted mean of /.::is disagree, simple procedure of borrowing has weighted mean of /.=1 is strongly disagree and reason as daily allowance for family e6penses is also disagree. Most of the respondents are disagree in the stated reasons above in terms of borrowing money. $t means that there is also some collateral and procedures in borrowing money from an informal money lender. $t seems that they have enough knowledge and the ability to loan from bank but they preferred to borrow money from informal money.
Table 9! Ter-s and Conditions
1. The
Category moneylender
must
8eighted /ean /./
Result 2trongly disagree
present an agreement with the money borrower /. $n the agreement,
the
/.(
2trongly disagree
amount must be stated 3. $n the agreement,
the
/.31
2trongly disagree
interest rate must be declared . $n the agreement, the mode
/.1/
2trongly disagree
monthly? is indicated. (. $n the agreement, the due
/.)
2trongly disagree
date must be specified. ). The borrower must present
3.1(
#isagree
collateral to the lender. Total
/.N
#isagree
of payment >e.g. daily, weekly,
This table presents the terms and condition of money lending procedure. Most of the respondents are strongly disagree about the stated terms and procedures on the agreements, because they don%t want the moneylender present an agreement to them, they don%t want the amount that they want to borrow must be stated on the agreement, declared the interest rate, indicates the mode of payment, they disagree that the borrower must present collateral to the lenders, and specified the due date because they will pay them on the right time on what they had been transacted.
