Lending Money In The Philippines

[robert k]

Attributed to Mark Twain, "The holy passion of friendship is of so sweet and steady and loyal and enduring a nature, that it will last through a whole lifetime, if not asked to lend money". Another attributed to Benjamin Franklin, "Before asking a friend for a loan, decide which you would rather have".

 

If someone asks for a loan and they are genuinely in need, not just in need of a vacation, I generally tell people to pay it forward and not back, and of course I never give more than I can afford because I see no point in adding myself to those in need. :) I did loan my stepbrother $100 years ago that I never got back, he avoids me like the plague. Best $100 I ever spent because I used to lose at least that much every month in tools he borrowed and never returned. :)

[Thomas]

I did loan my stepbrother $100 years ago that I never got back, he avoids me like the plague.

Oh it isn't only some Pinoys behaving like that?!! :mocking:  

[bootleultras]

I loaned a guy 100k and he's currently paying it back 25k a month for 6 months so I'm making a cool 50k, stressful yes but I like a gamble... Amazing they'll accept 5% per month

[Thomas]

I loaned a guy 100k and he's currently paying it back 25k a month for 6 months so I'm making a cool 50k, stressful yes but I like a gamble... Amazing they'll accept 5% per month

That's NOT 5 % per month (=60 per year) 

it's almost 100 percent*...  :)

(Because he don't pay back the amount in the end of the loan period, he pay every month, so he loan the 100k just a bit more than the half period*  )

 

*I know my simplified calculation isn't corect either, corect would be to use the annuity formula, but most Pinoys have problem understanding percent**, so I will not try to make them understand annuity  :)

 

**Even one close to Master exam in Business have problem understanding percent, he managed the simplest, but not recounting to year...   But I found one clever Filipina managing the harder too (!) although she has just High School.