You might have heard of the popular phrase, “Wherever it is in the world, there’s always a Filipino.” It’s undeniable how millions of Filipinos have infiltrated the workforce in various areas of the world. And because of the sheer number of our fellow men lending their skills to many nations, they also have contributed significantly to the economic growth of the Philippines.
As a result, many Philippine banks and lending organizations deem this niche group of workers an integral part of their market. Loan programs and other financial products tailored exclusively for OFWs are being offered and encouraged. Although this is a good way to get that “extra” or “emergency” cash, there are things that you need to think about carefully. Some of these factors are listed below:
ELIGIBILITY
Just like any other type of loan, not everyone is qualified for an OFW loan. To be eligible, you must satisfy specific criteria. Although the fundamentals remain the same, the requirements can differ based on the bank and loan company. When applying for a loan, make sure you have these on hand as well as other conditions your bank or company might ask.
- You must be between the ages of 21 and 60 when the loan matures
- Seafarers Registration Certificate or Overseas Employment Certificate (for both land-based and sea-based OFWs), or Seafarers Registration Certificate (for sea-based OFWs only).
- Recently-issued Passport
- Working Permit
- Proof of Address (e.g. Utility bills).
- Government-issued valid ID
- Proof of Employment (e.g. Company contract)
VALIDITY OF PURPOSE
Even though most Filipinos earn better abroad – the main reason why they choose to work in another country in the first place, they would still have a long list of reasons why they need additional funds. A few common reasons include a loved one unexpectedly met a health emergency and has to be admitted to the hospital. On another hand, one may want financial aid as he/she embarks on that long-awaited business venture. Whatever your rationale is, the bank or loan organization must believe it is genuine and valid. Otherwise, your application might be turned down.
RELIABLE CO-MAKER
A co-maker is someone who agrees to repay your OFW loan if you are unable to do so. If you don’t match some of the aforementioned conditions (for example, because you’re under the age of 18) or if you’re looking for a collateral loan, a reliable guarantor can improve your chances of being authorized and receiving a larger loan amount. And when we say reliable, you have to make sure that he/she understands the conditions of the loan. At the same time, you have to be reliable yourself and pay in a diligent manner. This is to avoid financial difficulties or ugly confrontations with that person in the future. You could write another contract between the two of you just so everything is on paper.
BEST PROGRAM
Picking the most appropriate and best OFW loan program for your needs might be difficult, with a plethora of banks and companies providing various benefits as well as disadvantages. Because of this, take time to go through each one with your specific needs in mind. Make a list of programs that caught your attention and compare them to one another. You can then choose the one that appears to be the best fit for you.
We may have all realized by now that working or living overseas doesn’t mean money is free-flowing. OFWs also need financial assistance from time to time. So, whether you’re searching for a loan to cover an unexpected bill or start a new business, consider the factors listed above and keep them in mind before applying.