Almost Eaten by a Loan Shark

Due to an emergency in their family, Ramel & Lizel had to take out a large loan from a loan shark who was charging 20% interest per month. Every day the man would come to collect. It was a struggle for the family to come up with the Php400 ($8.00) to pay the guy, and this only covered the interest. After several months of this, they were a lot poorer and still owed the full amount of the debt.

Ramel owned a motorcycle so he used it as a “habol-habol” driver (a motorcycle taxi) to provide as best as he could for the family. Lizel was running a “sari-sari” store (a small store attached to the house selling small quantities of basic household items). With three children with one in college, they were struggling to make ends meet but they were working hard and doing the best they could.

Hope Eternal Asia provided the funds of Php20,000 (approximately $400) to pay off the loan shark. Instead of loan repayments of Php400 a day seven days a week, they now had loan repayments to Hope Eternal Asia of Php200 a day five days a week. And instead of an interest rate of 20% a month, they now had an interest rate of 1.5% a month. And they will have their loan paid off in 5 months.

The extra Php200 every day that they now have is being used for two purposes. Php100 is used to help provide the funds needed to repurchase items for the sari-sari store and to grow the business and to keep the motorcycle maintenance-free. The other Php100 is being used to help with their family expenses.