Seamen are one of the most numerous OFWs working around the world. It’s not a surprise as the industry is one of the highest-paying out there. However, sea-based OFWs still find themselves enduring financial difficulties and in situations that necessitate assistance.
When that happens, we are bound to obtain financial aid through loan products. Despite a major misconception that this profession brings in the big bucks, the fact that there are unique loan solutions that are tailored specifically to our needs means this myth needs to be disproved.
The Seaman’s Loan is a program for seafarers who need financial assistance for many good reasons. These include funding a big investment, starting your own business, or even starting your own retirement plan. Whatever the situation calls for, you still need to consider a few things such as your financial situation. So, when do you need to apply or not apply for a Seaman’s Loan?
WHY APPLY FOR A SEAMAN’S LOAN?
The following are some of the reasons why you should apply for a Seaman’s Loan.
1. DEBT CONSOLIDATION – If you have more than a few loans in your portfolio, you are clearly aware that fulfilling your financial commitments in a timely way is better than falling behind on several payments. By consolidating your debts through getting a loan, you don’t just avoid getting frustrated but it allows you to organize your payables and devise a strategy for paying off your obligations
2. BUSINESS CAPITAL – If you think seafaring is not something you can do forever, building your own business where you can stay home and spend time with your family is ideal. A seaman’s loan may be quite helpful if you need to kickstart your dream business or if you need more funds to build your company.
3. EMERGENCY EXPENSES – It’s inevitable. Unexpected medical bills, a family loss, or even an unintentional accident are all things that may or may not occur to you or your loved ones. You can count on the Seaman’s Loan to pay an unforeseen cost immediately with its speedy approval and disbursement.
4. HOUSE UPGRADE – There is indeed no place like home, and one of the most common investments seamen put their money into is their own real estate. This includes monthly mortgages, maintenance, and upgrades. Through a seaman’s loan, you can make sure that your family is in a good dwelling place even if you have to leave them for work.
WHEN TO APPLY FOR A SEAMAN’S LOAN?
Just like any other decisions you have to make, you should be able to weigh the benefits and drawbacks of getting a seaman’s loan in relation to your purpose. After all, taking up a Seaman’s Loan, like any other form of loan, includes incurring interest, and you’ll need to be prepared to repay it over several years. Consider how much you’ll need to borrow if you don’t have enough money each month to cover principal and interest.
WHEN NOT TO APPLY FOR A SEAMAN’S LOAN?
If there’s no necessity right at the moment, of course, you shouldn’t take out a loan. Especially if you’ve previously taken out other types of loans, you shouldn’t take out a loan if you don’t need it right now. You also have to consider your credit score before you apply for a seaman’s loan.