Important Guide on Personal Loans for Overseas Filipino Workers
In our world which is full of commitments and obligations, huge savings in bank accounts and liquefiable assets is not something we can fully rely on. We need something concrete to save us from a rainy day. There are many options for loan available in the organized financial market which can give you the extra push you need in securing your future.
The only drawback about these loans is that they provide you security against a specific asset which doesn’t cover our requirements as we have many needs which we can’t tie to a particular tangible asset. The answer to this is a personal loan.
Personal Loan for OFW
In Philippines personal loan can be taken for many purposes such as home renovation, medical emergency, renovation, etc. it is on you on how you want to utilize that amount. Nearly all financial institutions sanction loans to the resident Filipinos and OFW (Overseas Filipinos Workers.)
OFW loan is pretty common as many Filipinos live abroad to work, study, live up to their potential. The number of Filipinos living abroad is huge which makes an essential factor to have financial assistance from their home country. The terms and conditions of the personal loan to the resident Filipinos and OFW are slightly different.
They depend on factors such as the type of employment and income. The category of OFW includes those who will live abroad for a fixed amount of time and those who will live there indefinitely. Most of them will return after a fixed time. As the number of Filipinos living abroad keeps growing the personal loan interest rates in the Philippines is on the surge.
Eligibility for OFW
The requirements for resident Filipino and OFW are slightly different. They are:
- Age of the applicant: the applicant must be at least 21 years old.
- Income criteria: the minimum income criteria apply for both selves employed and salaried applicants.
- The period of stay: they will have to work for a stipulated amount of time with a specific employer.
- Account requirement: the applicant should have an existing savings account or a fixed deposit with a bank in the Philippines.
- Legal permit: the applicant should have a legal and enforceable work permit with them.
Application Process for OFW
Almost all of the banks provide an option to apply online through their web portals but you do need to submit your documents to the closest branch in the Philippines. Different banks have the different procedure so do inquire properly and understand the terms and conditions. As it will be difficult for Filipinos working abroad to approach a bank in the Philippines, there is an option for using power of attorney for the documentation process.
Different provisions of personal loans for OFW from their home country are the best thing a country can do for its residents as well as nonresidents. This way they can have a more secure future.