Do not borrow from ‘5-6’, turn to cooperatives – Villar

Published March 23, 2019, 3:58 PM

by Francine Ciasico

By Jel Santos 

Businessmen should not borrow money from loan sharks offering the “5-6 scheme” as it will only lead to bankruptcy, Sen. Cynthia Villar said Saturday, urging them instead to turn to cooperatives which offer low interest rates.

Senator Cynthia Villar (Senate of the Philippines via Facebook / MANILA BULLETIN)
Senator Cynthia Villar
(Senate of the Philippines via Facebook / MANILA BULLETIN)

“Do not borrow money from 5-6 as it will only bankrupt your business. Businessmen should borrow money from cooperatives as they have low interest rates unlike 5-6,” VIllar said during the National Convention of Ating-Koop party-list at Club Filipino in San Juan City.

The “5-6” lending scheme involves small loans which are charged an interest of at least 20 percent.

Pres. Duterte had warned people from engaging in the “5-6 money lending scheme,” saying loan sharks who practice it make life harder for poor Filipinos.

Villar said cooperatives help improve the lives of people especially in rural areas in the country.

“Cooperatives help people improve their lives especially in the rural areas in the country. This is why they are so close to my heart as they alleviate the lives of our poor countrymen,” the lawmaker said.

“When I learned that they want to tax cooperatives under the TRAIN law, I explained that cooperatives help poor people,”Villar added.

Villar has pledged to help cooperatives, and improve the lives of poor Filipinos should she get reelected as lawmaker.