We do not have the answers to every question – but the very asking of the question is the beginning of the answer. So why don’t you send us your questions and let us together find the answers to our questions.
I know a member of a Catholic organization who runs a lending company which works like a 5-6. They are good leaders in our community but I understand that this is against the Church teachings.
The Bible forbids the lending of money with interest. But that was at a time when money had a stable value. Today the value of money changes so that if I lend you P10,000.00 today, next year when you give it back to me it will actually only be worth maybe P9,000.00 in terms of the goods it can buy or in terms of rice. So the Church does allow interest to be taken on a loan. That interest should not be excessive and it is to be judged by several factors. One important factor is the RISK involved. If there is no collateral then the lender runs the risk of losing everything and sometimes does. Hence he or she makes up for it by increasing the interest. Another factor is to ask what is the prevailing interest at that time and place. What is very wrong is to take advantage of people’s illness or otherwise to lend them money on a land title with an exorbitant interest rate and deliberately use that to get the land from them. This happened a lot in the Marcos years in the rural parts of the Philippines and was one of the factors that drove the revolution. Now to your friends we should be slow to judge and you would have to be quite sure that you really have the true details. People are inclined to give only their side of the story.