Are you a Filipino worker looking for an easier way to get loans? Look no further; an OFW loan would be a perfect solution for you! Here’s how it works and how you can apply it. Check it out now!
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What is OFW Loan
One of the most important aspects of a Filipino migrant worker is their ability to return home. As one of the largest labor export countries globally, Filipinos often migrate for better opportunities and higher wages abroad. However, not all Filipinos can save enough money before going back home or afford to stay there for long periods.
With the appearance of OFW Loan, Filipinos who work overseas provide loans and can access financial services and ensure their families will be taken care of when they’re gone. If you are wondering about this, keep reading this article to understand more about it.
OFW Loans
A Loan For Employees Working Outside The Philippines
In the current economic situation, Filipinos working abroad have become a lifeline for their families back home. A recent study found that 2 million Filipino households survive largely due to OFW earnings in 2017 alone, with many more relying on this source of income every month.
However, while these workers make enough money from sending it overseas and filling out applications at banks across Southeast Asia, they still need financial support when making large purchases such as cars or real estate. This puts pressure on them and other members connected by family ties who often apply for loans to greater use than expected.
See also: Blend PH: A Responsible Lending Platform For Your Plan Of Finance!
Benefits Of Loans For Filipino Workers
Filipino banks are always there to help their employees. The Philippine banking system has been providing OFW loans, including housing and other large purchases, for years now without remitting your desired purchase back into the country.
Here are several benefits of OFW loans:
- Quick approval;
- Money transfer right away
- System of flexible loan repayment;
- Possibility of selecting an appropriate credit program;
- Possibility of selecting a money-receiving method;
- The application can be registered quickly, including online;
- Credit schemes are available for the worker and a member of his family.
How To Get A Loan To A Filipino Employee Abroad: Detailed Instructions
The Philippine Worker Abroad is a citizen of the Philippines with temporary residency in another country.
They reside there for an agreed-upon amount of time, usually to work or send money back home. Sometimes, they need financial support, which means going into bank loans (at higher interest rates).
Get A Loan In 3 Steps
Step 1: Go to the webpage of one of the organizations where you wish to take a loan by opening a browser and typing in a keyword search like “bank name + OFW loan.
Step 2: There are several requirements that you need to get your first bank account. You must have Philippine citizenship, be at least 20 or 21 years old with stable income from an employer who will sign a contract for employment purposes only (no self-employed individuals allowed).
You need to prepare the so-called “Proof Of Relationship” for family purchases such as birth certificates, marriage certificates, etc.
Step 3: Make an application for a loan. Specify the amount of money you’d want to borrow and the terms under which you’d like to take out a loan. A loan might be paid once a week, twice a week, or once a month.
Completed! You should hear back from the bank soon on your application.
See also: Paymaya Lending Corporation – Easy Financial Services
Conditions For Granting Credit To Employees Working Abroad
The general condition for Filipino workers who applied to state banks and private financial institutions is one year of work experience on the last job. This rule applies both within and outside the country.
However, there are some exceptions if you have previous loans from other countries and your own nationality’s bank before coming here, allowing more flexibility in terms of requirements.
Abroad workers have certain advantages when it comes to mortgages. They can apply for larger loans, and if they’ve had at least three years with a stable income in their home country.
Then, you’ll be safe applying without any doubts about the social security system (SSS). It offers favorable rates! Applying as an individual is possible even though one partner has already taken advantage of this program before marriage.
Loans are available to Filipino workers with a good credit profile between the ages of 21 and 65 (at time loan repayment), as it should be noted that they do not have any other actual debts.
Loans made in large amounts will take into account one’s financial situation before approving or declining them. This may make borrowing easier for those who would like an easy way out financially without having too many strings attached from creditors, such as high-interest rates.
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What Banks Offer Loans To Filipino Workers?
The following is a list of well-known banks that provide loans to OFWs. These are some of them:
- BDO Unibank;
- AUB Seafarers Loan;
- EastWest Personal Loan;
- Security Bank Philippines;
- China Banking Corporation (CBC);
- BPI (Bank of the Philippine Islands);
- PSBank (Philippine Saving Bank)
- Pag-IBIG (Mortgage Unit Investment Fund) and SSS (Social Security System), and others.
Banks offer loans to Filipino workers.
OFW Loan Requirements
It is important to recognize the contribution Filipino professionals make in other countries. However, not every bank develops specific lending programs for foreigners. Moreover, Filipinos must comply with the requirements of whichever organization they apply to when applying for a loan or visa extension. This can be difficult because these rules may vary between different agencies within one country’s bureaucracy.
A loan application to the United Bank of Asia may be authorized if the following conditions are met:
- Presence of a United Bank of Asia (AUB) account;
- The borrower earns at least $1000 each month;
- At the end of the loan period application, the borrower has fulfilled at least one employment contract.
A state-issued ID with a photo is required for those seeking a loan. One or more of the following papers may also be required:
- refit contract;
- certificate POEA
- POEA OFW information sheet;
- proof of admission to a foreign university
- a contract of employment has a start date;
- agreement with the Philippine Employment Administration of the Philippines (POEA).
The BDO Bank is one of the largest banks in South East-Asia, with branches located across Eurasia and North America. The online service offered by this company allows you to get your account without having an office near where you live or work. In other words, it can be accessed anywhere at any time.
Getting a car loan with BDO bank entails meeting the following additional requirements for Filipino borrowers:
- Two years of constant work experience for qualified employees;
- Domestic workers must have three years of continuous job experience.
Loan requirements
How To Apply For OWWA Loan?
Before you can apply for an OWWA Loan, some things will have to be considered. For instance, OFWs or Overseas Filipino Workers may qualify, and they have distinct requirements depending on the type of business being attempted with this loan.
Before starting any negotiations, just remember these important points.
There is a long process to get these documents, and it’s not easy, but you can do so with patience. You’ll have everything from the Certificate of Registration down through Mayor Permit for your business or event planner to go smoothly.
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Conclusion
If you are a Filipino worker abroad, OWWA loans can help provide financial assistance to your family back home. The OFW loan has many benefits for employees of all types and comes with different requirements depending on where the loan is being taken out from.
If you want to apply for OWWA Loan, please read through our instructions carefully before submitting your application form online, with all required documents attached.
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