For many, the decision to work abroad is fueled by the desire to provide a better life for the family. Many Filipinos see working abroad as a stepping stone to fulfilling their dreams and improving living conditions. Overseas Filipino Workers (OFWs) are major contributors to the country’s economy and with the influx of overseas job opportunities, their number is only expected to grow.
The workers’ remittances are extremely high and that largely contributes to more domestic consumption, ultimately leading to a stronger economy. With such numbers, many might think that life is much easier for OFWs, especially since they earn their salaries in dollars. However, for many, it is still often difficult to cover the family’s daily needs with a monthly income and many often struggle with finances. In such cases, one can turn to an OFW loan for help, so here are some things to know about it.
What is an OFW Loan?
It is a loan that is specifically catered to Overseas Filipino Workers and is a form of financial assistance. It is only applicable for OFWs and their families and has special terms and conditions that will need to be met.
OFW Loan Types
You can choose a loan that best suits your needs and listed below are the most common types. However, if you are unsure where to apply for one or what the best choice is, you can use online services such as AllTheBestLoans. They enable you to search for the best loan offers, at the same time providing information about companies in the financial market to protect you from potential scammers.
Pinoy Abroad – This is the most common type for OFWs who are currently abroad.
Allottee – The OFWs beneficiary is provided with cash through this loan. It is usually applied when there is a salary or allotment delay.
First-Time Abroad – First-timers who need financial assistance are eligible and the money they receive is usually used for travel tickets and document processing.
Land-Based – They are usually applicable for workers who are currently on vacation in the country or for rehired workers who have an active work contract. Its purpose is usually for document processing or for paying the flight back to work.
Balikbayan – This loan is meant for OFWs who have decided to go back to the Philippines for good. It is usually used for starting a business and reintegrating into a more comfortable life of retirement in the country.
There are many different reasons why people apply for these cash loans. However, banks or private lenders are extremely cautious when it comes to the purpose. The allowed reasons to apply usually include:
– Acquiring or constructing a new home or for renovation
– For starting a new business
– For processing work-related documents or paying for plane tickets
– Consolidating debt
– Emergency, education, or vacation funding
There are some basic requirements that need to be met, although each lender has a set of their own. Some common requirements you need to meet include.
– The age of the borrower which must be between 21 and 65 years old
– Having a valid working contract and abroad work experience of at least 2 years
– Having a co-borrower
– Setting the monthly loan repayment to at least 50 percent of the income
Some documents that are required include:
– An application form that includes a signature and photograph
– At least one form of ID
– Proof of employment
OFW loans can serve a number of purposes and can help deal with the expenses back home. Find the best offer through a search system and enjoy the benefits that will allow you to not only improve your life condition but also eliminate the need to refrain from making desired purchases.