Origin of 5-6
By Graceekwenx
@Graceekwenx (3160)
Philippines
7 responses
@cadguy08 (1224)
• Canada
2 Dec 10
I know it was originated by those "Sibuyas" who lived there I can't say their nationalty because there's a lot of them here in mylot. They are really making money out of our Kababayan there in Pinas. They are riding in bikes long time ago and with all things they can carry to sell and lend money to our Kababayan. I still work with them here in our place they are so terrible as they are "Tamad and cheaters as well" I terms of work. So I cannot identify them but we Pinoy here hate them.
@cadguy08 (1224)
• Canada
2 Dec 10
You never work with them so you have no idea how they really relates and work with co workers. My wife had been push around and fired by sibuyas without cause or explaination. I work with them and they keep talking at your back and making fun of me and I do the work but they just keep hiding from work is that a good worker tell.
@Gorillafootprints925 (3586)
• United States
2 Dec 10
Usury used to be a crime but not in Christian dominated nations. So now earning interest is legal. Indian immigrants who lived in the Philippines they were probably started coming in the country as traders. Anyway, I really don't know how it originated. I think this is how it works. They lend you cash for example they give you 1000 and then you have to pay them back 1200. I think it basically mean that you have to pay 20% interest. And since earning interest is not a crime anymore it is legal.
@Graceekwenx (3160)
• Philippines
3 Dec 10
Because you are not a Filipino. How did you know all this? Do they do lending trade there as well?
@Graceekwenx (3160)
• Philippines
3 Dec 10
Hmm.. I looked at your profile and i am amazed on how you know all this.
@romzz05 (572)
• Philippines
2 Dec 10
In Business if the risks are high the rewards should also be high. I think that's why there is 5-6 lending. The lender since there's really no legal documents that can demand the borrower to pay them back opted to just give high interest or ask for collateral like mobile phones so in case one of the borrower decided to "split" or disappear the lost will just be minimal. I use to live in a barangay where almost everyone have borrowed money or bought pahulugan with 20 percent interest. Its funny how they actually hide every time the collector knocks on their door.
@Graceekwenx (3160)
• Philippines
3 Dec 10
Now i understand why they charge that high.
And as for my fellow countrymen, i feel so sorry for them. I had been into thinking that they had no choice but to succumb to 5-6 especially if they had poor credit status among banks. The trouble with the credit industry here is that your record goes there and it stays there; and no matter how far you have improved in your payment obligations, the record would still be the same and the banks stick to that reference.
I am in the lending business but i have no legal documents for that. Everything is lent by good faith. It is a typical "paluwagan" , here in the office. When December kicks in, i start collecting money from my officemates (Php250/share) every payday till October end. That way, they get to save money, they have lending benefits with a maximum amortization of 9 months at 2% interest. Every October end, i would give out their cash plus the dividends.
I do understand the high risk but wont i go to hell for that?
@syoti20 (5292)
• Philippines
3 Jan 11
5-6 originated to Indian people brought here in our country, Philippines.
5-6 is know in terms for money talk. If an Indian lend you a money worth 5000. In return you will pay him 6000. The Indian person will have an interest of 1000 in lending you a money.
@louievill (28851)
• Philippines
2 Dec 10
The answer is very simple, it originated from lending money, and 5-6 is the rate of interest approximately about 20 percent of borrowed money. To give you an example if you borrow 5 pesos you pay them 6 pesos , if you borrow 500php then you pay 600php, if you borrow 1,000php then you have to pay the lender 1,200 php. This system of lending and borrowing was introduced by our Indian brothers who migrated to the country . The term later on evolved to mean lending money for the sake of gain or interest but does not necessarily follow the 5-6 model anymore.Hope I answered the question correctly 
@Graceekwenx (3160)
• Philippines
3 Dec 10
Whaaaaaaaaaaaaat??!!! 20%????!!! Is that even legal???!!! They are even worse than banks!
Now i get it.
@hardworkinggurl (37063)
• United States
2 Dec 10
I must admit I had never heard of this prior to your discussion. I have reviewed the responses and find them helpful. Thanks for the discussion and I did not want to overlook it from my myLot friend. Each day I learn something new. 
