Despite the notion that OFWs have ‘a lot of money’, the reality is that many are also just trying to make ends meet, much like the employees working in the Philippines. In times of financial trouble, OFWs might also resort to taking a loan. What are the possible loans and credit programs available for OFWs?
There are actually many possible options available for OFWs. We’re posting here some of the popular options.
Loans Available from Banks
Banks such as BDO offer personal loan options for OFWs. Different banks have different policies.
For example, BDO Asenso Kabayan Personal Loan is available in two options: unsecured [multi-purpose and non-collateral personal loan for OFWs with fixed income] and secured [personal Loan for OFWs against hold-out on joint or individual account deposits maintained with BDO as security].
OFWs who are not eligible for unsecured loans with BDO can still take a loan, but they can only borrow up to 90% of the deposit account balance.
OFWs who take a loan from the BDO Asenso Kabayan Personal Loan program can borrow up to P3 million, depending on their eligibility.
Another top option offered by a banking institution is the loan program offered by PSBank, with several options available for OFWs: including car loan, home/real estate loan, and business loan.
OWWA Business Loan for OFWs
For OFWs who are trying to build a business in the Philippines, OWWA is offering a loan program especially for this purpose. The catch is that the OFWs are not allowed to use this for personal needs. So, they have to submit a feasibility study of their businesses as well as basic documentary requirements.
At 7.5% interest per year, the loan program is an excellent choice for OFWs who are planning to start a business. They can borrow up to P2 million, depending on their capacity to pay, the nature of the business, and the results of the feasibility study.
Agri-business, healthcare, education, and tourism industries are prioritized but OFWs can also borrow money to start manufacturing, services, and trading industries.
OWWA Personal Loan for OFWs
This is not available yet, but as reported on a previous RachFeed article (House Approves Bill Allowing Credit Assistance for OFWs), the House of Representatives already approved the bill.
The money can be used by the OFW to leave funds for their family for use during the first few months when the worker is not yet able to send remittance. This money can also be used to cover placement fees and plane tickets, if these are not paid for by the company.
Interest rates are pegged at 6% per year; OFWs can take a loan of up to P50,000.
OFW Loans from SSS
SSS salary loans are available for all currently employed members of the Social Security System (SSS), whether working local or abroad.
The highest loanable amount is equivalent to 2 months of salary credit. With SSS placing the highest monthly salary credit at P16,000, then OFWs and local workers are eligible for a loan of up to P32,000.