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OFW Loan Guide: Banks that Offers Loans for OFWs

According to the Bangko Sentral ng Pilipinas, OFW remittances in 2016 amounted to $2.4 billion. This is why the government is continuously providing programs and services that could make their lives and that of their families better, including OWWA Loan.

The good news is there are other financial institutions that offer various loan facilities specifically for Overseas Filipino Workers. Whether it is a business loan, a personal loan, home loan, or car loan, these banks are willing to extend their helping hands to you:

1. Bank of the Philippine Islands (BPI)

BPI offers variety of loan facilities for both land-based and sea-based migrant workers. This includes Personal Loan up to P1 million, Housing Loan, and Auto Loan designed for OFWS.

To apply, you must be a Filipino citizen and 21 years old and above and not more than 60 years at the time of loan maturity. You must also submit government-issued IDs and your latest and unexpired POEA contract or current employment contract with boarding date.

Visit www.bpiloans.com to apply online.

2. BDO Unibank (BDO)

BDO established the Asenso Kabayan Program to provide financial assistance to OFWs who wish to apply for a home, auto, or personal loan.

BDO bank loan requirements are: borrower must be at least 25 years old but not more than 65 years by the time your loan matures and employed for at least two and three years for skilled workers and domestic helpers, respectively.

You can also download BDO application form for loan on their website, www.bdo.com.ph

3. Chinabank 

Chinabank offers Overseas Kababayan Services, which provides secure, reliable, and competitive products that allow you to manage your remittances, investments, and personal needs. This includes home loan, car loan, and personal loans as well.

To apply for China Bank OFW loan, requirements include age of borrower between 21 and 65 years old upon maturity of loan and should not have any adverse credit findings like unpaid loans, cancelled credit cards, or bouncing checks among others.

Visit www.chinabank.ph for more information about their loan facilities.

4. Philippine National Bank (PNB) 

“You First” is PNB’s tagline. True to its promise, PNB came up with Global Filipino program for OFWs. They offer auto loan and home loan for your family and avail of any of the facilities even when you are working overseas through their branches outside the Philippines.

Similar to other banks, you must be at least 21 years old to avail of any of the loan facilities and must not exceed 65 years old at the time of maturity. You must also be working abroad for at least two years to qualify.

Know more about PNB’s Global Filipino program here.

5. Philippine Savings Bank (PSBank)

PSBank is also committed in providing overseas Filipino workers with facilities that could enhance your life. Aside from the savings account and remittance facilities, PSBank also has home and car loan products for OFWs.

Apart from the basic requirements such as age and term of employment, don’t forget to submit your Job Contract, proof of remittances for at least three months, and consularized Certificate of Employment.

Check out PSBank’s loan facilities in their website.

6. RCBC Savings Bank (RCBC) 

Whether it is a housing loan, car loan, personal loan, or a loan to help you start your business, RCBC got you covered. They provide flexible terms as well to make payment easier and more convenient for you.

You can learn more about RCBC’s consumer loans by checking out their website.

Check the loan facilities offered by various banks and ask about their interest rates and payment terms to help you decide which bank is the best one for you.

 

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Get to Know the OFW Reintegration Program A Little Better

One of the programs and services provided by the Overseas Workers Welfare Association or OWWA is the Reintegration Program. This program aims to help returning overseas Filipino workers and their families through livelihood opportunities and other income-generating means.

Hence, the birth of OFW Reintegration Program. Understanding the OFW Reintegration Program

Also known as OWWA Loan or OFW Loan in the Philippines, this program is a loan facility and an enterprise development intervention of OWWA in partnership with Land Bank of the Philippines and Development Bank of the Philippines. It aims to support enterprise development among migrant workers and their families as an alternative to overseas employment.

Loan Features:

  • Only OFWs who are active members and are certified by OWWA can apply for the OFW Reintegration Program. Eligible borrower can either be individual (single proprietorship) or by group (partnership, cooperative, or corporation).
  • Purpose of the loan must be for working capital or fixed asset acquisition.
  • Loanable amount is between P100,000 to P2,000,000
  • Short term loan is for maximum of one year, while long term loan depends on the cashflow, but most not exceed seven years and inclusive of two years grace period.
  • 7.5% interest rate per annum
  • Proposed business must generate at least P10,000 net monthly income. It could be a franchising business, transport service, trading or service business, construction or rental, agri and non-agri production or manufacturing, or contract tie-up with Top 1000 corporations.
  • Loan security is required such as real estate mortgage, chattel on equipment or machinery, Deed of Assignment on inventory or receivables, or hold-out on deposit

Below are the requirements for OFW Loan  you need to submit in case you want to avail of this facility:

  • OWWA certification as proof that you are a bona fide member
  • Certificate of Completion of Enterprise Development Training (EDT). Read more about it here.
  • Bio-data of the applicant
  • Business-related documents and permits such as business plan, Certificate of Registration with DTI, and Mayor’s Permit
  • If applicable, at least three years Income Tax Return, BIR-filed Financial Statements, and latest Interim Financial Statements
  • Statement of Assets and Liabilities

How to Apply for OFW Loan:

1. Visit the OWWA Office near you to undergo the required training. You will be asked to undergo trainings in relation to this loan facility.

2. Secure the EDT certification then submit the other requirements to Landbank for evaluation and processing.

3. Wait for at least 45 days upon submission of complete loan requirements to know the status of your loan application.

It is important that you submit complete requirements to avoid any delay and for faster processing of loan application.