Businessmen should not borrow money from “5-6″ as it will only lead into bankruptcy, Sen. Cynthia Villar said Saturday.
Instead, she said that they should turn to cooperatives because of their low rate of interest.
“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 rate unlike 5-6,” the reelectionist senator said during the National Convention of Ating-Koop party-list at Club Filipino in San Juan City.
The ”5-6” lending scheme is the act of giving a small loan wherein the borrower needs to pay a big interest of 20 percent.
It can be recalled that Pres. Duterte warned people from engaging in the “5-6 money lending scheme,” saying loan sharks who practice it make life harder for poor Filipinos .
Villars said cooperatives help improve the lives of people especially in rural areas in the country.
“Cooperatives help people improve their lives especially in 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 told the representatives of cooperatives all over the country who attended the convention.
“When I learned that they want to tax cooperatives under TRAIN law, I explained that cooperatives help poor people,” Villar added.
Villar has pledged to help cooperatives and improve the lives of poor Filipinos with them should she get reelected as lawmaker. (Jel Santos)
