OFW Loan: Understanding the What, Why, and How

According to POEA’s 2015 Employment Statistics for OFWs, there are more than 1.8 million workers deployed in various countries around the world, mostly in Middle East. Regardless of where you work or the economic class you belong to, one thing is for sure: you play a crucial role in strengthening the Philippine economy. This is why many banks and private lending companies offer loan facilities and other products specifically for OFWs.

Here are the basics and what you need to know about OFW Loan in the Philippines:

OFW Loan Requirements and Eligibility

OFW Loans may be “more compassionate” compared to the other loan facilities offered by lenders. Still, this doesn’t mean anyone can just apply. Every lender’s requirements vary; however, below are the most basic eligibility requirements:

• At least 21 years old at the time of loan application and not more than 60 years at the time of loan maturity.
• Latest Contract of Employment, Certificate of Employment, or POEA Contract, whichever is applicable
• At least one government-issued ID
• Payslip for at least three months
• Passport
• Working visa (for land-based workers) or Seaman’s Book (for seafarers)
• Filled-out loan application form

If you want to keep the application process less complicated, consider Balikbayad. They have fewer documentary requirements and processes your application quickly and efficiently.

Loan Facilities Available 

There are various loan facilities you can apply for, depending on your needs. The good news is that there are facilities specifically designed for you, the modern day heroes. You can apply for:

• Home Loan, for purchase, improvement, or construction of your dream home
• Car or Auto Loan for the purchase of brand new or previously-owned vehicle
• Personal Loan, which allows you to use the funds for personal reasons
• Business Loan, to help finance your working capital needs in putting up a business

You can learn more about these facilities in detail here.

Why You Should Get an OFW Loan 

There are several good reasons why it’s okay to apply for an OFW Loan. This includes:

• Extended Financial Assistance – Whether you are in or out of the country, OFW Loans may extend financial assistance to your family, especially during emergencies.
• Pre-Deployment Loan – Even if you have an existing employment contract, this doesn’t automatically guarantee a plane ticket on your destination country. OFW Loans can be extended on ticket booking – and be financially worry-free.
• Emergency Budget – Apart from the extended financial assistance, OFW Loans in the Philippines can also be used for emergency budget to get you and your family covered.
• Business Opportunity – The government and other financial institutions recognize the need of OFWs to have a sustainable and stable source of income. One of them is to encourage entrepreneurship. You can put up your own business through OWWA Loan or check lenders near you and ask about the Business Loan they offer.
• Re-employment – Not all OFWs have the privilege of getting their contract renewed. In case you want to get back in the workfield again, getting an OFW Loan could help you in the processing of requirements – from booking tickets and anything in between.

Above all this, make sure that you course your loan application only in legitimate and trustworthy lenders. Do your research, compare the facilities offered, and find a lender best suitable for your needs.