If you’re an OFW and need to fulfill your responsibilities, will you consider getting an OFW loan?
With all the unwanted things happening, Overseas Filipino Workers or OFWs were forced to reduce their working hours or even sacrifice their jobs because of pandemic or retrenchment. What if your savings aren’t enough? Will you consider a loan especially made for you?
What is an OFW Loan?
The OFW Loan Is A Type Of Loan That Is Made Especially ForOverseas Filipino Workers , Both For The Land-Based And Seaman OFW. OFW L Oans Can Be Different Kinds With Special Terms And Conditions That Are Appropriate To Eligible OFWs And OFW Families. OFW Loan can be money, properties, or other material goods that you need to repay depending on the terms of the lender.
Can OFW apply for a Loan?
Yes. Private and Government-owned banks are promoting OFW Loans whether the worker is on vacation in the Philippines or currently working overseas.
How to know if you’re qualified for an OFW Loan?
Check these qualifications and know if you’re eligible for the Overseas Filipino Worker Loans:
- Should be 21 years old and above
- Should not exceed 60 (in some cases 70) years old when the loan reaches it maturity
- Should have a monthly income of Php 40,000 to Php 50,000
- Should have a stable job for at least two to three years
- Should have an immediate family in the Philippines who will serve as the co-borrower
Types of OFW Loan
- Personal Loan– In applying for a personal loan, the lender doesn’t require any asset or collateral. It can be the same amount or twice your salary.
- Housing Loan – This is the most popular type of loan for an OFW. This type of loan can be useful in getting your first-ever home or renovating your current home. Titles will be transferred to you once payment is done.
- Car Loan – This type of loan is intended for purchasing a brand new car. Unlike Personal Loan, a car loan requires collateral. Some lenders, financial institutions, and banks will make the car your personal collateral. If you failed to pay on time and interests are already high, the lender has the right to cancel your loan and repossess your vehicle.
- Business Loan – This type of loan can be used for starting up a business or upgrading your business.
Why Consider an OFW Loan?
If you’re planning to retire early or meet that financial goal as soon as possible, you might consider getting an OFW Loan.
NOTE: But before preparing your documents, be sure to know these things:
- For Emergencies – Emergencies are stressful for everyone. If you’re not ready to withdraw your savings yet, getting an OFW loan can be of great help.
- For Investment – If you’re investing your loan, then it’s a good idea as the money you have borrowed may double or triple in time.
- To Start a Business – Business allows you to reach and meet your financial goals in no time as long as you’re serious and hands in to your business matters. Getting an OFW loan for your capital is actually a perfect idea.
What are the requirements for an OFW Loan?
Just like any loan available in financial institutions and banks, OFW loan applicants should submit documents that have their personal identity, employment status, and annual salary. Below are the basic requirements that financial institutions or banks will require:
- At least two valid IDs (Philippine passport, including OFW-related IDs like OWWA ID, Seaman’s Book)
- Consularized certificate of employment with compensation details
- Copy of visa
- POEA overseas employment certificate
- Plane ticket and flight details
- Proof of remittance to family in the Philippines
- Proof of billing (shelter, electricity, gadgets, loans, etc)
- Proof of residency
- For seafarers, the latest crew contract
Remember, these are just the basic requirements. Lenders, financial institutions, or banks may request further documents to prove your identity and paying capacity. Following their rules and requirements can lead to a higher chance of loan approval.
Note: To avoid stress and hassle, be sure to prepare all your personal documents and employment certificates.
Where to Apply for an OFW Loan?
If you’re planning to apply, you might want to consider any of these banks and financial institutions: Just like any Loan Products in the Philippines, banks and finance companies offers an OFW loan with different terms and conditions.
BPI, BDO, PSBank, Security Bank, Metrobank, etc.Note that these banks have different loanable amounts, minimum loan tenure and annual interest. You may opt to use a loan calculator to know which bank fits your preference and budget.
Finance Companies like AsiaLink Finance Corporation, Quicklend Financing Company Inc, etc. Just like the banks, these finance companies have different loanable amounts and terms of payment too. If you’re hesitant to visit a bank due to long lines, you may consider these finance companies.
Make a wise decision
Getting an OFW loan on top of your monthly expenses can be very exhausting. However, if you’re getting an OFW loan for the betterment of your status and family, then getting an OFW loan can be very useful.