Aside from being called as the modern day heroes, the remittances of the OFWs serve as the lifeblood of the country’s economy. This means that they play big part to make the economy of the country stable as much as possible.
That’s why they have all the right to access whatever services offered in the Philippines and this include OFW loan.
Many people think that an OFW doesn’t come across financial crunches. Just like any other Filipino working locally, even overseas workers, regardless of their monthly income still have financial needs. Seeking out the service of an OFW loan is the best option that comes in mind.
The good news is that there are banks and other government agencies in the Philippines that offer different OFW loan services that can be used for various purposes. However, it is the homework of the OFW to find a loan option that carries low interest rates and a legitimate one.
Here are some banks and government agencies to choose from:
- Social Security System or SSS
An OFW who is a member of SSS and had made 24 months’ contribution continuously can avail for a loan. It can be used for acquiring your dream house. For low cost housing, an OFW can borrow as much as Php2 million and Php405,000 for socialized housing that can be repaid within 15 years.
- Home Development Mutual Fund (Pag-Ibig)
If an OFW had paid at least 2 years’ monthly contributions with HDMF, he or she can avail maximum loan amount of Php750,000 that is payable within 30 years.
- Bank of Philippine Island OFW loan
An OFW who earns a Php30,000 or more monthly income and has been working for 2 years in foreign country is qualified to avail personal loan from BPI. The personal loan is basically for land-based OFW and it comes with 2% monthly interest. For sea-based OFW, the allowed maximum loan is Php300,000 with a monthly interest rate of 2.46%.
- BDO Asenso Kabayan loan program
This OFW loan programs include personal and car loans. An OFW can apply for BDO Asenso Kabayan loan provided that there is an active savings account with the bank. The interest rate offered by BDO seems to be the lowest among other banks and lending institutions.
- Philippine National Bank
The Philippine National Bank offers Philippine Home Loan designed for OFWs particularly those working in Singapore. You can apply for at least 80% of the appraised value of the house and lot value that is payable for 20 years.
OFWs working in Saudi Arabia and Hong Kong can apply for Global Filipino Auto Loan. The loanable amount is 80% of the vehicle price and payable within 5 years.
There are several loan options to choose from. But, before signing the fine print make sure to read carefully the contract. See to it that it would not cause additional burden to your financial status.