Part 6/10:
Mayon recounts stories of borrowers who, driven by enthusiasm or desperation, have made unwise financial decisions—such as a young man attempting to become a merchant without sufficient knowledge or security. He describes how such ambitions, if not grounded in prudence, often lead to debt, loss, and discouragement, likening it to falling into a deep pit from which escape is difficult.
The narrative underscores the importance of caution and proper planning: loans should never be given without a clear, secure purpose. Borrowers must demonstrate they can and will repay, and lenders must assess whether loans are backed by tangible assets or reliable income.
Principles of Wise Lending: Security, Purpose, and Caution
Mayon highlights key criteria for lending: