THE POPULARITY OF LOAN

SHARK AMONG THE RESIDENCES

OF FATIMA V, AREA E CITY OF
SAN JOSE DEL MONTE BULACAN
 BACKGROUND OF THE STUDY
A loan shark is somebody or a group of people (that often look and act very
business-like initially) who offer unsecured high interest loans and usually don't make
any background checks or question what the money is for. They often have ties to
other criminal activities and criminal syndicates like the mafia. Loan sharking can also
be used as term for a loan that simply charges an illegally high interest rate. Many
people said that loan sharks are illegal that’s why it is not safe to borrow money from
it. The money given to you may be laundered, counterfeit or from other illegal outlets
and they may demand repayment much earlier than agreed. Due to the nature of the
deal they commonly use violent force to ensure their money is paid back and if this is
not possible it can have fatal consequences. Interest rates are usually astronomical and
they can change them at will because they are obviously not governed by any legal
institution. The researchers choose this topic because they wants to know why loan
shark continues to be popular in San Jose Del Monte, Bulacan. This topic also wants to
know the reason why people borrow money to the loan shark despite of high interest.
The researchers were curious about lending and what kind of transaction happening in
many loan sharks and everything about the possible cases against of it.
 RESEARCH PROBLEM
Nowadays, loan sharking became part of many Filipino
lives. It became a behavior that cannot erase easily. The
researcher found that Loan Sharking is one of the problems in
the Philippines particularly in San Jose Del Monte Bulacan that
needs a very big solution. The popularity of loan sharks in San
Jose Del Monte Bulacan may sound a simple problem but it really
had a big effect in one community once it is use illegally. Loan
Sharks may have a lot of advantages especially for the debtors
and lenders but it also has a lot of disadvantages that maybe
only few people are aware. The researchers want to obtain and
get answers for that problem that needs solution and to be able
to help as well as to improve the community.
 RESEARCH QUESTION
This aims to answer the general question, what is the reason why people continue entertaining loan sharks
despite its high interest rate.

Specifically, this question sought to answer these following problems in the study.

1. What are the demographic profile of the respondents in terms of :

a. Age
b. Gender
c. Socio Economic Status
d. Civil Status
e. Occupation
2. What are the reasons why people borrow money from the loan shark?
3. Is there a significant difference between people borrowing money from loan sharks and from their
acquaintance?
4. Is there a significant difference between people borrowing money from loan sharks and from the bank?
5. What are the advantages and disadvantages of loan Sharking?
 SIGNIFICANCE OF THE STUDY
The importance of this study is to understand what the loan
shark is, what’s the kind of transaction happen in this kind of
lending, and the rates that gives on you and for us to know the
consequences and laws that can impose to the person that borrows
and to the lender who do loan shark illegally.
The owner or the lender is significant because the researcher
want to know what they will get by lending money to others with
high interest rate. The person who borrows money or the people
entertaining loan shark is also significant because they’re the one
of the reason to conduct this research and the researcher want to
know what is the effect of loan sharks in their daily life.
 SCOPE AND DELIMITATION
This study focuses on the different means of lending,
specifically the people who entertain loan shark. The scope of this
study is made to find out the factors that influence people to
entertain a loan shark on 100 people particularly in barangay Fatima
V in San Jose Del Monte, Bulacan. It also focuses on the lenders
who lend money that give 10% and above interest to those debtors.
In addition, this study helps many people become aware in
overcoming problems in the community that related to this research.
This study also involves the laws that can be imposed on the
lenders.
 CONCEPTUAL/ THEORETICAL FRAMEWORK

• The

OUTPUT
• Identifying the • The researcher’s will
INPUT

PROCESS
popularity of Loan obtain information Understanding
Sharks using the ff. means/
• Lenders and ways: of the reasons
debtors in Loan why Loan
Sharking • Survey Research. Sharks
• Reasons for the • Random Probability becoming
Sampling
popularity of
• Using Statistical
popular among
Loan Sharks the residences
Tools such as simple
• Advantages and frequency of Fatima V
Disadvantages of count,percentage
Loan Sharking distribution and T-
Area E, San
• Theories and test. Jose Del
Related Monte,
Literatures Bulacan.
 RESEARCH METHODOLOGY
 This presents a research design to be used, population and sample size, sampling techniques,
description of the respondents, instrumentation and statistical treatment of data.
Research Design
 Descriptive Research Design
Population and Sample Size
 100 household for our respondents in San Jose del Monte Bulacan, specifically in Fatima V, Area E
Instrumentation
 Self-Designed Instrument
Sampling and Sampling Technique
 Simple Random Sampling
Statistical Treatment of Data
 Frequency Count
 Percentage Distribution
 T-Test
 RESULT AND DISCUSSION
5% This figure presents
14% the pie graph of the
33% To start a business

For children educational use

For Personal Use and To buy
personal property
20% To widen my montly budget
To pay existing debts
28%
result obtain from the
respondents
according to their reasons
of borrowing
money from the loan
sharks.
 The average for the level of agreement for the three(3) items in decreasing order

AVERAGE ST.DEVIATION ST.ERROR QUESTION

4.08 1.8 0.2 Q2
3.89 1.8 0.2 Q1
3.21 1.6 0.2 Q3

Paired t-test of the respondents response between borrowing money in loan sharks and to their acquaintances
Pair Mean SD T P-Value
Loan sharks and their 3.985 1.8301 -0.7341 0.4646
acquaintances

Null Hypothesis: There is no significance difference between people borrowing money from loan sharks and their
acquaintances.
Alternative Hypothesis: There is significance difference between people borrowing money from loan sharks and their
acquaintances.

Paired t-test of the respondents response between borrowing money in loan sharks and to banks

Pair Mean SD T P-Value

Loan sharks and 3.55 1.73 2.7752 0.0066
banks

Null Hypothesis: There is no significance difference between people borrowing money from loan sharks and banks.
Alternative Hypothesis: There is significance difference between people borrowing money from loan sharks and banks.
 CONCLUSION
Considering the findings of the study, the following conclusions were
drawn:
1. There is no significance difference between people borrowing money
from loan sharks and their acquaintances.
2. There is significance difference between people borrowing money from
loan sharks and banks.
3. The researcher concluded that the popularity of loan sharking in City of
San Jose Del Monte Bulacan specifically in Area E is due to the poverty
that many people now are experiencing.
4. Based on the result obtain from the respondents, the Advantages of
Loan sharks is that it easy to borrow money from them and helps many
people financially. It also reveals that the disadvantages of loan shark is
that it really require high interest rate.
 RECCOMENDATION
Based on findings and conclusion of the study, the following are recommend.
1. The researchers recommend to all loan sharks to be more ethical and accountable.
They must lend money with low interest rate. Loan sharks must not take advantage
on the people and they ought to be the one that help people. They must also have
an written agreement to the debtors before they lend money in order to lessen the
conflict between them.
2. The goverment should imposed a stronger law in accordance to Loan Sharkings,
they must take an action on how to avoid the prevalence of it, because basically loan
sharkings is very bad habbit or values that need to lessenfor many filipinos.
3. Most of the debtors are encourages to be more wisely in borrowing a money from a
loan shark, they must be aware of any information regarding the loan sharks and the
advantages and disadvantages of entertaining it.
4. In the case of Area E City of San Jose Del Monte, Bulacan since it is urban in nature
but rural in technicality, there must have an organization that conducts a seminar to
discusses in many residences about loan sharks and inform them how to borrow
money in a right way and in a right lender. To prevent the prevalence of loan
sharkings.
5. It is also recommended for future researchers to do further studies regarding the
popularity of loan sharks in philippines specifically in many places in bulacan not
just in Fatima V, Area E City of San Jose Del Monte Bulacan to help the
community in many ways