5-6 / Sangla

Finance

Informal lending arrangements common in Philippine communities. '5-6' refers to short-term cash loans with very high effective interest, traditionally borrow five and pay back six, often offered by informal moneylenders without paperwork. 'Sangla' means pawning, where a borrower leaves an item such as jewelry (sangla ng alahas) or a land title (sangla ng lupa) as collateral in exchange for cash, redeemable upon repayment. Pawnshops are regulated, while informal 5-6 lending is not. These carry higher costs and risks; terms are subject to the latest rules/guidelines.

Related terms

TIN (Tax Identification Number)BIR (Bureau of Internal Revenue)Income TaxSSS Salary LoanPag-IBIG MP2 SavingsGCashCredit ScoreCooperative