Loans in Philippines

[Michael Parnham]

This past three weeks Maritess mum has been in Hospital and when presented with the bill all the family clubbed together to pay it - ourselves included - but there was a shortfall of approx.p50,000 so one sister of Maritess went to get a loan.

It appears that these companies that give loans out are government owned and to borrow p50,000 they have to pay p2,500 per month for five years. That to me totals p150,000 -what a Rip off!

So what we've decided to do is pay the remaining p50,000 and her sister pay p833 a month into our PNB a/c.

I noticed that when we lived in Philippines, many, many people take out these loans for Hospital bills, Fiesta's, Phones and other Luxuries like Furniture and also expensive Weddings.

The Government must be making an absolute fortune so don't you think it should be pay back time and the Philippine Government get a Health service system in place so that the people can benefit and have a healthy lifestyle?

[stevewool]

A tough one this Michael, its good that the family can come together at times like this. There must be thousands who cannot find the money so what do they do?

[tiger31]

To put it bluntly, they die I,m afraid. Just think, if a poor family member gets cancer, they will suffer a slow death even tho' many cancers are curable.

It,s all about the $$$$$$ here - sad but true!

[fred]

Michael..
According to PS Bank, to get a 50k loan here you need to earn around 15k a month and have been employed for at least 2 years..
Self employed people need to earn at least double that amount..
There are quite a few other documentary requirements too!.. Interest rates are not that bad.

http://www.psbank.com.ph/psbank-flexi-personal-loan-with-prime-rebate.aspx

Here`s the loan requirements at BPI

http://www.bpipersonalloans.com/pages/required_documents

Locals around here don't usually go near banks.. They usually borrow small amounts from Indian money lenders at about 12% a month.. They pay daily for 30 days till loan is cleared then borrow again..
Sometimes they become members of local credit unions and borrow at lower rates from them in the form of a group loan.. Its up to each member of the group to make sure the payments are regular,otherwise their credit limit drops.. These tactics are often employed by small Sari sari store owners.
Foreigners that dont understand the loan culture here often get angry at the Indians because of high interest rates.. The thing is,its often only these guys that are prepared to take the risk of lending them hard cash..

[Michael Parnham]

Micheal..
According to PS Bank, to get a 50k loan here you need to earn around 15k a month and have been employed for at least 2 years..
Self employed people need to earn at least double that amount..
There are quite a few other documentary requirements too!.. Interest rates are not that bad.

http://www.psbank.com.ph/psbank-flexi-personal-loan-with-prime-rebate.aspx

Here`s the loan requirements at BPI

http://www.bpipersonalloans.com/pages/required_documents

Locals around here don't usually go near banks.. They usually borrow small amounts from Indian money lenders at about 12% a month.. They pay daily for 30 days till loan is cleared then borrow again..
Sometimes they become members of local credit unions and borrow at lower rates from them in the form of a group loan.. Its up to each member of the group to make sure the payments are regular,otherwise their credit limit drops.. These tactics are often employed by small Sari sari store owners.
Foreigners that dont understand the loan culture here often get angry at the Indians because of high interest rates.. The thing is,its often only these guys that are prepared to take the risk of lending them hard cash..

Thanks for that Fred, will file it for future reference! :xxgrinning--00xx3:

[tiger31]

It,s a high risk - too often ending in death. If a local wants out the debt, then 2 guys on a scooter is often the way out.

[KeithD]

To put it bluntly, they die I,m afraid. Just think, if a poor family member gets cancer, they will suffer a slow death even tho' many cancers are curable.


...and people in the UK moan when they have a non-urgent operation cancelled, or they have to wait 10 months to see a doctor about a painful knee. :doh

[stevewool]

As long as you have enough funds to cover what may go wrong then live where every you think best,
The Phils still looks the best for now :xxgrinning--00xx3:

[Ako Si Jamie]

If a local wants out the debt, then 2 guys on a scooter is often the way out.Or a Western Man :icon_lol: