Chapter 5

SUMMARY, CONCLUSION, AND RECOMMENDATIONS

This chapter presents the summary, conclusion, and recommendation based

from the themes generated from the study.

Summary

The current study intends to determine the lender’s dilemma in the legalization

of money lending business. Moreover, this study targets to understand the lender’s

experiences. Finally, the sought to identify the implication of legalizing money lending.

The study used the qualitative method of gathering data which enabled the

researchers to understand and answer the research problems enumerated. The data were

gathered using Focus Group Discussion with In-Depth-Interview (IDI) with seven (7)

participants. Thematic Analysis was used to know the lender’s dilemma in the

legalization of money lending business.

The following are the findings derived in the study:

Based on the Thematic Analysis done, two final themes emerged, namely,

Facing Legal Consequences in Performing Money Lending Business and The Beneficial

Effect of Legalizing Money Lending Business. Each final theme compromises

composite themes concluded from the participants’ response during the Focus Group

Discussion. Moreover, the final themes obtained are meant to answer the two research

questions presented in Chapter 1.

1. From the Thematic Analysis done, there is only one final theme that answer

the question: What are the experiences of the lenders with regards to the move of the
government about the legalization of lending business? The final theme, Facing Legal

Consequences in Performing Money Lending Business implies that lenders are having

hard time of applying for registration of lending business because of the capital amount

needed by the government. In addition, money lenders are also in a play of hide and

seek in lending money because they are afraid to be caught and put in jail. Due to lack

of legal documents to be shown, lenders cannot oblige the debtors to pay their

obligation.

2. There is only one theme to answer the question: What is the implication of

legalizing money lending in the lending business? The only theme which is The

Beneficial Effect of Legalizing Money Lending Business implies that all small lenders

are affected due to the reason that their business is the source of their income. Lenders

are worried if their business will become legal because they cannot easily impose a high

interest and they need to follow the maximum interest. It is also shown that, it is

advantage if the lending business is legal because lenders has the right to recover their

borrowed money in a legal process.

Conclusions

Based from the results and finding of the study, the following conclusions were

drawn:

1. If the moneylender fails to have a valid license, he or she loses the right

to recover the loans through the legal process. Money lenders are having hard time in

acquiring a license because they don’t have enough capital and they are unable to meet

the government’s demand.

 2. Upon hearing about the criticism of the government towards the

legalization of money lending, some of the participants claimed that they feel bad and

disappointed about it because the government seizes all the small money lending.

3. Once the business had been legalized, they are obliged to pay taxes.

Money lenders are having a hard time in operating their business because they don’t

have the right to force the debtor to pay their debts and they cannot recover the money

that they have lent. Due to the government’s action about the legalization, the money

lenders are in a play of hide and seek in lending money. In addition, money lenders don’t

easily trust the people who wants to borrow.

4. Legalization of lending business is very essential in one’s business to

avoid criminal action and repercussions such as fine and imprisonment. In this case, no

lending company shall conduct a business unless granted an authority to operate by the

Securities and Exchange Commission. Money lenders can have the right to collect the

borrowed money because they have the legal documents which proved that their

business operates legally.

5. In the legalization of money lending, both the creditors and the debtors

can benefit. In the creditors side, they can run after the borrowers and collect the unpaid

interest and the principal amount. On the other hand, the debtors will no longer suffer

with the high interest rate that the illegal lenders imposed.

6. Many lenders are highly depending their income on 5-6. Unfortunately,

because of the government’s movement most of them were affected. The participants

have experienced a lot of difficulties and faced various struggles in operating their

business. The lenders were forced to limit their interest as well as the borrowers.
Recommendations

Based on findings and conclusions of the study, the following recommendations

are offered:

1. Further researches must attempt to know the point of view of the legal

moneylenders about the legalization of money lending.

2. Future researchers who will use the findings of this must try to construct

a more effective and deeper guide questions in order to obtain the expected responses

from the respondents.

3. Further researchers who would like to study the same problems

investigated in this study must attempt to know and identify the dilemmas that have

been experienced by the lenders and be able to determine the effects of money lending.

4. The government should consider the complaints and views of the

moneylenders about the legalization of money lending.