Many of the Philippines poor people we are endeavoring to help out of poverty, have asked what are the conditions for money that we lend to them, as they were expecting to be charged similar to the “Mumbai” 5-6 loan system brought to the Philippines by Indian business people, but is now also done by Philippines business people too. This is where the lender loans say 1,000, and that is multiplied by 6 and divided by 5, to give a total repayment of 1,200, is usually loaned on a monthly basis, and with repayment daily of 1/30 of the loan repayment total. So you borrow say 1,000, repay 1,200 as 40 each day for 30 days. To get an understanding of the Interest Rate involved in this loan system, if a person borrows the same 1,000 each 30 days, repays it in full each time, and re-borrows it again immediately, the Annual Interest Rate is 240%, so 1,000 borrowed costs 2,400 to borrow it and repay it over 1 year. If the borrowing is done each 30 days, and not repaid each 30 days, the Annual Compound Interest Rate is 791.61%.
Since I arrived in the Philippines on 4 June 2013, ALL MONEY PROVIDED TO PHILIPPINES PEOPLE HAS BEEN LENT TO THEM, AND NOT GIVEN TO THEM, according to the following firm conditions:
ZERO INTEREST RATE.
ZERO FEES OF ANY TYPE.
ZERO PENALTIES OF ANY TYPE.
That as soon as the Borrower is able to repay part or all of the amount loaned, they must repay that money, so that it may be re-lent to other poor people in the Philippines, which is the purpose of why we operate in the Philippines. That money may come from any source, such as a business, work, family members, OFW’s, or anywhere else. It is imperative that money be repaid, as the poverty level in the Philippines is claimed by third parties, particularly charities, to be in the vicinity of 70% of the people living in the Philippines, and we aim to help the maximum number of people we can with the very limited funds we have. So far all money loaned to people have come from Ian Russell Baker’s Australian Federal Government Disability Support Pension (so far PHP 6.8 Million by living like a poor person to save the maximum amount to then be lent to multiple poor people), and a single loan amount of PHP 1.2 Million from Ricardo Jaramilla Baker (Ian’s son). We have received no money from anywhere else. If a borrower is able to repay the loan, and refuses to do so, then Ian Russell Baker will file a Civil Case to ensure that the money is repaid, as it will be 100% loaned to other poor people. Ian Russell Baker is the Custodian of that money to help as many poor people in the Philippines as possible, and it is imperative that the money be repaid promptly, loaned out quickly to as many people as can be helped with it, and pull the millions of Filipinos out of this wretched poverty that has increased rapidly over the last 40 years or so.
We do lend the little money we have, to poor people to advance them to get a better job, or run an obviously successful business. All of this very limited money is used only for these purposes, and not for schooling, medical procedures, or birthday or similar celebrations. When we assist a poor family, we lend money only for specific purposes, and not to be diverted to any other purpose without written agreement. Our objective at all times, is giving a “hands up” to poor families, and getting them out of poverty PERMANENTLY.