Guide On Loans For OFW In The Philippines In 2017
Overseas Filipino Workers are the biggest earners of Philippines economy. Whatever money they earn abroad, they send back to their country every month. About half of OFWs are working in the Middle East. Women are more than men, and most of OFWs are young workers aged below 30.
There are a lot of Filipino workers struggling financially, and some of them end up facing debt whatever they earned overseas. There is a lot of family pressures on them, and they remain family’s primary earning member. They are forced to take high-interest loans before they leave abroad.
The Philippines government is providing loan for OFW and their families which will help them to establish a stable livelihood within the country. There are many best personal loan options available for OFW at a low-interest rate. Here is given information about various loans for OFW available in the Philippines.
Personal Loan from the Banks
Banks are providing a personal loan at a low-interest rate and flexible payment return. But you will have to go through a lengthy screening process and paperwork. The personal loan given to OFW is a collateral free loan. Bank offers two type of personal loan for OFW: for land-based and for the seafarer. The amount approved for the loan also differs for both of them.
Land-Based OFW Loan
- You will get loan amount three times more than your salary.
- The interest per month against loan will remain 2%, and payment terms are flexible.
- To get the loan, you are required to produce photo-bearing ID card and employment contract with boarding date.
- You will get maximum ₱ 300,000 at an interest payable 2% to 3% per month.
- The payment term will remain nine months maximum.
- The documents you have to submit remains two valid government issued photo bearing id proof and latest signed POEA contract.
Private lenders are the alternative for offering loans for OFWs. They grant all type of loans, and they are straightforward offering quick loans for needy people. They are regulated by BSP making them credible lenders. The loan application will be processed faster than banks.
- Most private lenders offer loan amount a minimum ₱ 20,000 to maximum ₱ 1000,000 based on an assessment.
- The money you can borrow depends on the monthly salary of the applicant. Most lenders approve double the amount of monthly salary, and the interest rate will remain between 2% to 4% per month.
- The repayment terms of the loan don’t remain flexible. The private lenders offer 12 month repayment time. Payment of the loan has to be done over the counter in company’s office.
A personal loan will help OFWs to achieve their financial goal, but still, it is a form of debt. Consider interest rate and your ability to pay before you apply for one.