By Angelo Marasigan, HOPE supporter 

I spent the first 25 years of my life in the Philippines, where limited job opportunities push many people to start their own small businesses to provide for their families.  

But access to business loans—and the chance to make a living—often comes at a high cost. 

In the Philippines, and many other communities around the world, predatory lending is common. With little to no other options available to grow their businesses, many entrepreneurs must borrow at soaring rates of 20% interest per week or more. I’ve seen it up close. I met a lady this past February who was paying 120% annual interest on her loan just to keep her business. 

But for some, the cost can be much more devastating. Someone close to my family once borrowed money the same way. After a while, she got deeper and deeper into debt and couldn’t pay. One day, she went missing and was never found. 

The model of borrowing money from these loan sharks is not designed to help. It’s designed to keep people in oppression.  

Another kind of lending—one meant to promote people’s wellbeing—is needed. And I’d encourage you to read the article by HOPE International’s CEO, Peter Greer, on the difference between predatory lending and HOPE’s holistic approach to microfinance that equips and empowers people.   Continue Reading…