HomeCAS Journal of Researchvol. 6 no. 1 (2012)


Aurora E. Araojo | Glenda C. Rima



This study looked into some aspects of the life of Indian Money Lenders in Virac, Catanduanes as well as their borrowers. Specifically, the study answered the following questions:: (1) What is the profile of the Indian money lenders in terms of
personal and family profile?; (2) What is the business profile of Indian money lender along: period of stay in Catanduanes, compliance to legal requirements, strategies used in attracting prospective clients, capitalization, terms of payment, and area of business?; (3) What are the problems encountered by the Indian money lenders in their business?; (4) . What is the profile of the money borrowers ?; and, (5) hat are the advantages and disadvantages of borrowing from Indian money lenders as perceived by the borrowers? This study made use of descriptive-qualitative method of research, employing
interviews and observations as main data-gathering tool. Descriptive statistical measure was used in analyzing the data gathered. In light of the findings, the following recommendations are being offered:: (1) Since the respondents of this study are the Indian foreigners, the Department of Foreign Affairs must be vigilant in monitoring the legality of the foreigners who are entering the country to be able to control those illegal aliens who do not renew their visa. These are the
people that we often refer in our dialect as “TNT” or “Tago nang Tago” (2) The proper way of securing a business permit be observed. The Department of Trade and Industry, together with the Bureau of Internal Revenue, must issue certification and permit before a certain business can be considered legal. The local government in the barangays where these Indian Money Lenders are conducting business operation must impose upon them the lawful way of conducting business. Because these Indian money lenders do not pay tax for their industry, they do not contribute to the revenue of the government which should be siphoned back to the economy for public expenditures and government which should be siphoned back to the economy for public expenditures and social development programs that can help for the progress of the local economy of the province of Catanduanes.; (3) Considering that these Indian Money Lenders will comply with the legal requirements, they will be protected by the law and authorities against these problems that they often encounter in carrying out their business.; (4) Market vendors, micro-enterprises and other marginalized business establishments need to borrow more money during the crisis. It is notable that Indian Money lenders are considered by many as undesirable. However, the Indian Money Lenders’ different risk diversification strategies can be an asset for Filipino society especially during economic
downturns. The owners of micro-enterprises in Catanduanes, who are often the borrowers from these lenders, are particularly vulnerable to external shocks of globalization, and informal financing mechanism with global funding source, such as that of Indian money lenders may assist in alleviating the volatility.