Course 9010 lessons

Understanding usury and 5-6 lending red flags

An honest, non-judgmental look at '5-6' informal lending, explaining its real effective cost, why people still rely on it, and the warning signs and safer alternatives worth knowing.

What '5-6' lending actually is

'5-6' lending is a form of informal, short-term small-scale lending common across the Philippines, especially among market vendors, sari-sari store owners, and workers who need quick cash. The name describes the deal literally: a borrower takes 5 units of money and agrees to repay 6, meaning a flat 20% gets added to whatever amount is borrowed, repayable over a short, fixed period.