A loan for employees working outside the Philippines
In the current economic situation, the contribution of Filipino employees, working abroad (OFW – Overseas Filipino Workers), is huge for the country. According to statistics only in the first quarter of 2017, earnings outside the country have become the main source of income for 2.32 million Filipino families. However, even with high incomes, in comparison with the salaries of workers inside the country, foreign workers also need financial support and often apply for a loan, especially for large purchases (cars, real estate, etc.).
Benefits of loans for Filipino workers
By taking into account the high solvency, the Filipino banks are ready to provide the employees with any types of loans (OFW loans), including large amounts with quick approval for the purchase of an apartment, a house, a car, etc. Using such proposals, you do not need to remit desired purchases and improving life conditions.
The advantages of OFW loans include:
- Possibility to choose a suitable credit program;
- Quick registration of the application, including online;
- Quick approval;
- Immediate money transfer:
- Flexible loan repayment system;
- Possibility to choose the money reception method;
- The availability of credit programs not only for the worker, but also a member of his family.
Online loan calculator for OFW
Conditions for granting credit to employees working abroad
In general, the conditions for Filipino workers who applied to state banks and private financial institutions for a loan are the same. The main condition is that you have at least one year of work experience on the last job. This rule applies to individuals, workers both within and outside the country.
Abroad workers have certain privileges: their income amount allows them to apply for larger loans. And if the work experience with a stable income is at least three years, then you can apply without any doubts for a mortgage in the social security system (SSS) at favorable rates. Applying for such loan is possible even if one of the marriage partners used the program before marriage.
Loans are available to Filipino workers between the ages of 21 and 65 (at the time of loan repayment), while they should not have other actual debts. For loans that involve large amounts, the credit reputation is taken into account, it should be ideal.
What banks offer loans to Filipino workers?
Below is the list of popular banks that offer OFW loans. These include:
- Pag-IBIG (Mortgage Unit Investment Fund) and SSS (Social Security System);
- BPI (Bank of the Philippine Islands);
- BDO Unibank;
- PSBank (Philippino Sberbank) and others.
Loans to Pag-IBIG and SSS
In the framework of the “affordable housing” program, Pag-IBIG has developed a program that provides a mortgage to Filipino workers who have worked abroad for 2 or more years. Citizens of 21-65 years will be able to take advantage of this opportunity. A mandatory requirement for borrowers is the absence of other credit obligations, unpaid loans and debts.
But people who have worked outside the country for more than a year have the right to apply for home loans directly in the SSS (social security system) under more favorable conditions. The program is available even if one of the marriage partners has used this loan before marriage, but if there are no delays and cases of non-payment.
BPI (Bank of the Philippines Islands)
For employees who work outside the Philippines and who have a monthly income of 30,000 Pesos, the Bank of the Philippine Islands offers consumer loans, as well as a mortgage loan for the purchase of a car.
For abroad workers (at least two year) with a monthly income of at least 40,000 Pesos, BPI offers mortgage loans. The minimum age of the borrower must be at least 21 years, and the maximum age of 60 at the time of debt repayment.
Credit to employees working abroad in Security Bank
The Security Bank has developed lending programs for Filipino citizens working abroad for 2 or more years. For registration of a mortgage, the level of earnings should be at least 40,000 PHP, and for auto loans – 50,000.
Mortgage is a pledge loan, where purchased housing serves as security. At the same time it is necessary to pay an initial contribution of 20% of the house cost. The rates vary between 5.07 – 9.44% per year. A loan can be issued for the purchase of a secondary housing , as well as new buildings. You can also spend credit for the construction of a housing.
In the auto lending market of the Philippines there some attractive offers from Security Bank. The main advantages are relatively low interest rates (5.07 – 9.44% per year), rapid approval, comfortable loan repayment terms, small initial deposit, lack of guarantor or pledge, the possibility of lending for the purchase of both new and used auto.
Borrowers can expect to receive 80% of the total cost of the purchased vehicle, with an initial contribution of 20%.
To repay the debt, you can use several methods: pay monthly in cash in the bank according to the schedule. The amount of debt can be debited from the borrower’s settlement account automatically.
BDO Unibank (BDO) loans for OFW
Unibank offers consumer loans, auto loans and mortgages for the Filipino citizens working abroad for at least two years,. For the loan and home loan, the salary should be at least PHP 50 000, and for consumer loans – 10 000. The program is available to citizens from 25 years, the maximum age at the time of loan repayment should be no more than 65 years.
How to increase the probability of loan approval for OFW in the Philippines?
To find a suitable offer for quick loans in the Philippines, we suggest using our service. This is an information portal, where you can find current offers from all banks and credit organizations of the Philippines.
You can find the desired offer through the search system, as well as a special form. After specifying the required parameters (desired amount, interest rate, monthly income, maturity date, etc.), the system will issue a list of banks offering loans for your requirements.
To increase the probability of approval, you can send an application to all organizations. With several positive answers, compare the conditions of each offer and choose the most appropriate option.
Example of calculating interest and loan payments
|TERM||10 days||20 days||30 days|
|LOAN AMOUNT||14000 PHP||14000 PHP||14000 PHP|
|INTEREST AMOUNT||1400 PHP||2800 PHP||4200 PHP|
|TOTAL REPAYMENT||11400 PHP||12800 PHP||14200 PHP|