Is 5/6 business legal or illegal in your country?

[Starmix]

I have heard from people's mouth regarding 5/6 lending business. They talked about applying for it because their salaries are still far to receive, so they discussed about this type of lending business.

I learn this day that there are foreigners doing it my place. Some of them are from India and in my country. This lending business is like a monkey business. It is 100 % illegal in the Philippines.

Do you have like this in your county?

 

[King Belieal]

I don't understand what the business is specifically about but if it is just a normal lending business, there is nothing illegal about it in my country. People always lend money to pay interest.

 

[kerryjoy]

It really complicating, i have never had an idea of that or seen of sort

 

[Starmix]

I'm going to ask my neighbor about this kind of lending. I've learned borrowers pay interest plus capital daily.

 

[Augusta]

I'm just hearing about this kind of lending business. So how do the operate the lending business?

 

[pousinha]

In my country, there are legal persons organized as agencies to perform lending businesses. To not bump into illegality, they must be registered by the Municipality, the Social Security and they must regularly report to the R.S.I. But I didn't understand what specifically 5/6 lending businesses means. The only illegal lending business in my country is usury, punished by the criminal code.

 

[Starmix]

I do not have any idea about 5/6 but my sister told me that this is illegal considering the interest of the money borrowed by an individual. It said 50% interest to be collected daily.