If you’re an OFW with big plans for your family, it’s important to learn how to save and set aside funds. Expenses in the Philippines can seem like they’re endless. From medical bills and school tuitions, it can be difficult to earn money when expenses are coming in from all directions. Your personal expenses are a big factor as well. Foreign soil calls for a higher cost of living. But if you’re planning to apply for an OFW Loan, this can help you out tremendously.
There is nothing wrong with applying for a loan. In fact, when you choose the right OFW Loan that fits your requirements, it can lift a huge weight off your shoulders. Loaning money is not easy and it requires a lot of discipline. Loans can be used for a multitude of things. If you’re interested in learning more, scroll down for more information.
What is an OFW Loan?
There is a common misconception about Overseas Filipino Workers. They are depicted as stress-free, financially sound, and relaxed. But it’s important to know that working abroad is also difficult. OFW salaries may be higher compared to local counterparts but an OFW Loan can be quite useful.
Loans can be money, properties, or other material goods given to you in exchange for future repayment of the loan value. It can be with interest or extra finance charges. You can apply for loans issued by banks, corporations, and governments. Loans not only help the borrower but it also helps the local economy.
Loans work through the terms of the loan that’s agreed upon by each party before any money is taken out. The OFW Loan is a type of loan that is curated for Overseas Filipino Workers. These loans can be different types and each comes with special terms and conditions that are suitable to eligible OFWs and OFW families.
Personal loans are based on your credit history and income. There is no collateral to secure this type of loan. It’s much easier to apply for a personal loan compared to a home loan and car loan. This kind of loan is useful if you’re planning small scale home improvements and home purchases. You can use this loan for bills, tuition fees and more. But it’s much better to borrow what you need. The details on what you will receive and how you’ll pay it back will vary from different lenders.
Auto loans are loans intended for purchasing a car. It’s similar to a personal loan as you will need to pay back the total amount including interests. The terms of payment can depend on your lender but it will usually be divided into monthly payments. Car loans are secured loans and your collateral would be the car itself. In this case, if you fail to make your payment the car can be repossessed. However, an OFW Loan can have different terms that can be much easier to manage.
Home loans are financial assistance offered by your lender to assist you in buying or modifying your property. The title of the home will be transferred back to you once the payment and terms are met. This is the most popular type of OFW Loan. Many OFWs abroad avail of this loan to financially secure their property while working abroad. Like the previously mentioned loans, the terms and payment details also vary.
Business loans are borrowed capital that can be used for current business expenses or for starting businesses. This loan is used when you lack a working capital for starting your business. It doesn’t matter what scale the business is. You can apply for a loan to give you better capital to get you started.
Reasons Why You Need an OFW Loan
It can be intimidating to get a loan. As an OFW, you may be dealing with a lot of expenses already. Adding a loan on top of everything seems like another difficult investment. In reality, this can help you and your family significantly by allowing you to be more flexible with your finances. If you need financial assistance, loans are the way to go. Loans are safe and are very beneficial if you need capital for emergencies or investments. There are several reasons why you need a loan. If you need financial assistance, getting an OFW Loan can help you make your investment faster.
To Invest in Real Estate
Many OFWs take out loans for homes. It’s a dream for many OFWs to build and establish their own property. Some even turn these investments into a viable money-making opportunity. Buying a home is the fruit of your labor. Investing in real estate allows you to get a place you can call your own. By making a loan, you can make flexible payments with specific terms to help you achieve your dream.
To Buy a Car
Another important investment is a car. Since your salary can be bigger than local wages, the local peso prices are more affordable. Instead of relying on commuting, buying a car can be an optimal choice. Getting a loan can help you finance the family car faster without sacrificing too much of your savings.
To Start a Business
It’s tiring to work abroad forever. It would be nice to come home one day. But to keep the money going, it’s important to find an alternative. Starting a business is appealing to many. Small businesses like sari-sari stores and cafes are great long term investments. To get you started on your business, it’s important to have a large initial capital. Business loans allow you to get enough starting capital to start your small business at home.
Emergencies can take you by surprise. Sickness and accidents are unpredictable. Unfortunately, the funds for emergencies can skyrocket. It can be hard to afford this on your own. To help you with emergencies, personal loans can be used.
Are You Qualified to Borrow?
Borrowing money is simple but you need to be qualified and responsible. If you have a lot of loans, make sure to settle them before applying for a new one. If your reason to apply for a loan falls under personal shopping or for new gadgets will have your application rejected. Make sure that when you apply for a loan, you have a valid reason.
- Workers that are currently working overseas and have an active employment contract may apply for a loan.
- Returning OFWs are also eligible. If you’ve previously worked overseas and plan to go back, you can approach your lender for a loan.
- First time OFWs with no initial capital or funds can apply as well.
For OFW loans, you must be an Overseas Filipino Worker that has a valid contract with an agency or legal entity. You can get a higher chance of approval when you show that you have a fixed source of income. As for your age, you must be 21 to 59 years old. This age range is considered mature and responsible to handle OFW loans. You must also understand the repercussions when borrowing money. If you’re 60 years old and above, you will need a special power of attorney to apply for the loan.
As a borrower, you should have a monthly salary that can cover personal expenses and loan dues. Some lenders require a personal appearance for land-based and sea-based loans. However, some companies offer loans even if you’re still abroad. If you’re still abroad, a co-borrower and immediate family member with a stable income can get your loan approved. Co-borrowers fall under the same 21-49 years old age range. Having a co-borrower can help finish loans in case of a lay-off abroad or policy shifts during employment.
What are the requirements for an OFW Loan?
You will find that every lender has a different set of requirements. But usually, they will have the most basic. In order to hasten the loan application, remember the following:
- You must be 21 to 59 years old at the time of your application. This is mainly for lenders. This will show your lender that you’re capable to work and pay off the loans.
- You must have proof that you’ve been working overseas for at least two years. This proves your stable income.
- Full Application form with your latest photo and signature
- Proof of Employment such as a pay slip or employment contract. These must be validated by the Philippine Embassy or Consul.
- Valid Philippine passport.
- Photocopy of your working visa
- Photocopy of government-issued ids such as driver’s license, TIN, SSS, or Voter’s.
- Billing statement of either electricity, water, credit, and phone bills to show proof of residency locally.
- Co-borrowers should also have proof of fixed income in the form of a certificate of employment or pay slip. If you own a business, business permits can be used as well. Co-borrowers will also need to bring two valid IDs and proof of billing.
Apply now for your own OFW Loan at Asialink Finance Corporation
Do you need extra funds? As a lending company for OFWs, we can give it to you at Asialink Finance Corporation. When it comes to online loans in the Philippines, we at Asialink Finance Corporation are dedicated to providing high-quality services for your needs and more. Loans at Asialink Finance Corporation are accessible, fast, and convenient. Click here to apply for your own OFW Loan now!