Life is full of commitments and obligations that mostly come with strings attached. Most of times, savings in bank and easily liquefiable assets are not sufficient enough to cover the requirement. In such cases, we look forward to a credit instrument that can help us achieve the objectives. In the organized financial market, there are plenty of loans available that extend financial assistance. Some of them such as a Housing loan or an Auto loan only fulfill procurement of the associated asset. On the flipside,there are plethora of obligations that are not related to a tangible asset.
In such cases, a loan instrument that instantly strikes the mind is a Personal Loan. Perhaps, the most popular loan instrument in Philippines today that can be availed for multiple reasons such as home renovation, holiday, medical emergency and other routine needs as long as it's legal and acceptable. As the name suggests, it's completely up to you on how you would like to utilize the amount. In the Philippines, nearly all homegrown and foreign banking institutions provide Personal Loans to resident Filipinos and OFWs(Overseas Filipino Workers).
Personal Loan for the OFWs
There are millions of Filipinos who live, work or study abroad owing to the endless opportunities and earning potential. The ever growing numbers suggest that the interest of Filipinos in seeking life outside the country is on the surge. Such workers are categorized as Overseas Filipino Workers(OFW), the ones who are out of the country for a fixed period or indefinitely. Some of the workers falling in this category are likely to return to the Philippines at a later point of time. Since Filipinos working abroad have some form of association or the other such as remittance to family members, banks offer Personal Loans to OFWs just the way they would offer to resident Filipinos.
However, the terms and documentation are slightly different for OFWs, determined on the basis of multiple factors such as type of employment and income. If you’re someone who is looking for a Personal loan in this category, you must know more about the banks that offer loans to Filipinos working abroad. The next section gives you a sneak peek about banks and their personal loan offerings.
Banks Offering Personal Loan in the Philippines for OFW
The following are some of the banks that offer Personal Loan for OFWs working abroad.
- Bank of Philippine Islands(BPI)
One of the most trusted banks in the country, BPI extends loans for personal use of up to 3 times the monthly gross income with amounts ranging from P20,000 to P1,00,000 that goes light on your wallet in terms of the interest charges.
- Flexibility to choose a term that starts at 12 months and can go up to 36 months based upon your financial convenience.
- The EIR(Effective Interest Rate) starts at just 25.60% for a 12-month tenor loan with payment through ADA(Auto Debit Arrangement).
- BPI also hosts online banking tools that are designed to help you with remote loan monitoring, an option that is sure to please Filipinos working abroad.
- BDO Unibank
A full service universal bank operating across the length and breadth of the island nation, BDO provides a multi purpose personal loan at low rates and packed benefits. For OFW’s, it a secured loan offered on the basis of monies held in the Savings Account or Time Deposits. It accepts both Peso as well as USD denominated deposits as security. The loan is offered to Filipinos who work abroad with a fixed income.
- One can choose a tenor starting as low as 6 months with up to 36 EMIs provided for loan repayment. This feature gives you enough options to choose a term as per your financial convenience.
- The minimum loan amount starts at P10,000 and can stretch up to P3,00,000 making it one of the highest providers in the market in terms of the loan amount.
- The EIR(Effective Interest Rate) is 17.08% percent for a loan term of 6 months, compounded on an annual basis.
- Standard Chartered Bank
EZ Loan is a traditional personal loan offering from Standard Chartered, the MNC bank with significant presence in the country. This multipurpose, economical loan instrument from the bank is laden with innovative features such as door-to-door documentation and payment holiday, where the first EMI is payable only after 30 days from the time of availing the loan. An OFW looking for a quick and efficient loan should consider this loan from SC to fund personal requirements.
- Interest rates start as low as 1.1 percent per month, making this one of the most cost-effective personal loans in the Philippines today. This helps you save loads of money in terms of the overall interest paid in a long run.
- Another feather in the cap is the fact that Standard Chartered provides up to 48 months for repayment of the loan amount along with the interest charges. Generally, the maximum tenor option available with most of the banks is 36 months.
- One can opt for a loan amount from P20,000 to P2 million as per the requirement. This range keeps in mind, the growing needs of a loan aspirant.
Personal Loan Eligibility for OFW
The eligibility requirements for OFWs to avail a personal loan in Philippines are slightly different from that of resident Filipinos. Some of them have been listed below.
- The applicant must be at least 21 years old.
- A minimum income criteria applies for both self employed and salaried applicants.
- Should have worked for a stipulated time abroad or with a certain number of years with a specific employer.
- Since most of the banks offer a secured personal loan, the applicant should have an existing deposit or savings account with the bank in the Philippines.
- Should have a legal work permit in the country of work/residence.
The eligibility conditions above have been provided by taking into account, the most commonly observed criteria set by leading banks in the country. The actual criteria differs from bank to bank. Do inquire in detail before making a choice.
Personal Loan Application Process for OFW
Most of the banks that offer a personal loan for OFWs let you make an application online on their web portals. However, the documents need to be submitted at the closest branch in the Philippines. Do inquire with the bank on the procedure, following which you can decide on the application. If you’re working abroad and not able to make it to the local office, some banks permit the Power of Attorney route to represent you and participate in the documentation process.
Otherwise, it works akin to the general application process. As a Filipino working or residing abroad, you may be required to open a savings/deposit account to secure the loan disbursed under the OFW scheme.
Personal Loan Documentation Requirements for OFW
Most of the paperwork relates to your employment abroad. Ensure you have the following documents in place before approaching the bank for a loan.
- One or more valid government(Philippines) issued IDs with Photo.
- Latest POEA contract or Employment Contract with date of boarding.
- Proof of Remittance
- POEA Overseas Employment Certificate and/or POEA Information Sheet.
How To Get The Best Personal Loan For OFW in the Philippines
As you would be aware by now, there are numerous personal loan offers for OFWs in the Philippines. Some of them are rich on features while some do not come with exorbitant fees and charges. As a well educated user of loan products in Philippines, your efforts must be directed towards comparing loan products before applying. This task not only help you to understand loans offered by various banks, but also help you to drill down and chose the best as per you needs. BankBazaar. ph is your one stop shop for all the information you need on different loans in the country.