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
Based on the Thematic Analysis done, two final themes emerged, namely,
Facing Legal Consequences in Performing Money Lending Business and The Beneficial
composite themes concluded from the participants’ response during the Focus Group
Discussion. Moreover, the final themes obtained are meant to answer the two research
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
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
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
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
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.
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
are offered:
1. Further researches must attempt to know the point of view of the legal
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
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.