Without any financial assistance available from the government that granted them the land, farmer-settlers accumulated huge debts at very high interest rates from usurious moneylenders.
Caps on interest rates also protect against usurious lending practices and can be used to guard against the exploitation of vulnerable members of society.
To be usurious payments made and received for the use of funds must be considered interest for loaned funds which require repayment at the maturity of the loan.
The "datu", themselves being forced to pay tribute, started fining their "timawa" harshly for arbitrary reasons or else lent them money at usurious interest rates.
