Can anybody please explain to me how Paluwagan works. My Filipino girlfriend is in a group who set up an account and for the life of me I can not understand it. She says that each member contributes an agreed amount each month and that money will be borrowed by somebody who then has to return it plus 10 percent in interest. She then goes on to say that in one years time your initial investment will be x3.
Having a quick look on Google, I can see no mention of an interest at all, it simply says that each member will draw the value of the pot in tern so if there were 6 members the first would draw the value of the pot in the first month and the last in the sixth month. Meanwhile each member still pays in the agreed amount per month for the pot to grow.
I simply cannot see where any profit comes from.