The Burden of Debt, the Tyranny of Micro Loans in the Philippines

The Burden of Debt, the Tyranny of Micro Loans in the Philippines

You Need A Fast Loan? Know What You're Up To.  

Save the true microloan companies that have been around in business for decades, having microloans in the country is one of the unfathomably unwonted situations a local can go through in times of financial lack. 

Getting microloans can cause a lot of stress and worry to customers who are bereft of funds, especially at a time when the pandemic came in and many companies have folded up. 

Those who need extra cash seem to endure, a dead-end recourse to settle their issues with less visible microloan companies, and gulp up the constant follow-ups and messages that happen in the most opportune times against customers.

From the POV (point of view) of customers, loans must be flexible and have to have the lowest interest rates to make it at least ideal and able to help, and support its customers.

From the POV of businesses, its loans are on a privilege-to-have and “to know” basis. This means loans are given if a customer can fulfill their criteria or eligibility for loans. And if a customer can fulfill on cue, settle their dues. Then they can easily make a microloan.

A remiss of payment is never ACCEPTABLE to small-time loan givers. In recent weeks, there have been news stories shared about the local authorities having bouts with microloan companies that verbally assault customers who fail to pay directly for their accounts.

If this sort of micro justice at all is any consolation, the rest of the microloan patrons still have no reason to feel secure even if they pay a bit here and there for their outstanding loans.

Despite the detached methods of giving out loans to local customers, borrowers are in for a blind alley as to how to recoup the immediacy of dues poised by many microloan companies.

Deadlines are usually strict. And not often palatable to those who need financial funds that require longer wait to settle.

The real issue about loans is, why go into business if you don’t have the right capital to hold a customer’s account FAVORABLE TO A PERSON’S CONDITION, in order TO GIVE THE BUSINESS OF LOANING A MORE FAVORABLE CLIMATE TO PURSUE IN LOCAL SHORES?

Micro loan businesses in actuality require a lot of details from customers before securing one. Those who don’t require collaterals of sorts such as in pawnshops, are more tyrannous and eagle-eyed in their accounts.

        Housewives most especially have no choice but to subject themselves to intermittent follow-ups once a successful loan is made. The consequence for a housewife is always to bear the indignity of not being able to settle their debts when loans fall beyond the due date.   

The early show-off ease in availing microloan products is boasted through marketing tactics of loan companies posting delectable ad prompts that lure customers in to make a loan, with the promise of easy delivery of products and/or dispensing of cash.

But there is always the sad reality of loaning. In the country, having loans is like bungee jumping into the unknown.  Both parties expect smoothness in a loan transaction. But there is always that requirement to share some and more, individual data of customers, to microloan businesses.  Once a loan is availed, the customers are often pushed to the edge with pay a.s.a.p tactics that often resort to customer labeling, and shaming when not heeded by the customer.

THE PROPOSITION

          There has to be a better way for the government to provide alternatives to the people who enter into microloan agreements.

There must be a recourse for people to take action against companies who resort to shame messaging and arduous follow-ups.

A loaning company that extends financial products, in times of financial or economic distress among customers, or when unfavorable business conditions exist, must be prepared to protect the dignity both of the customer and its own.

        LOAN COMPANIES MUST HAVE BETTER CASH RESERVES TO TIDE OVER LATE PAYMENTS of customers to avoid fueling a negative climate for loan companies when their customers who have been through it all, cannot really foretell what their vision is for pursuing the business of loans when customers who need them are in DIRE FINANCIAL STRESSFUL SITUATION ALREADY, THAT CANNOT BE METED OUT BY THE INSTITUTIONS WHO ARE SUPPOSED TO HAVE THE GENUINE CONCERN FOR MARGINALIZED CUSTOMERS.

AUTHORITIES MUST GIVE A SAFETY NET FOR MICRO LOAN CUSTOMERS WHO ARE TIRED AND ALREADY POCKET-DRY IN DEALING WITH THE CURRENT ECONOMIC CONDITIONS THAT DO NOT FORETELL A BRIGHT FUTURE FOR LOCAL FILIPINOS.

updated post @ 6:20 pm. Thank you for reading News Review Philippines by Anna Liza VB. This is a commentary. Please feel free to send in your comments or rejoinder through newsreviewph@gmail.com.