Month: May 2017

There are instances when you will need money to finance certain needs of the family. Apparently, your salary as OFW is not enough to purchase in full your dream house or finance the business you plan to put up. That’s okay. You can always turn to banks to help you finance your needs (with interest, of course).

Apparently, traditional banks are not your only option in case you want to apply for a loan. Over the years, private and independent lending companies are on the rise, giving not just OFWs but also potential customers more options in terms of lending.

The next question is this: which is better, traditional banks or private lending companies?

Here are reasons why you need to consider private lenders too:

1) Easier and faster approval

All lending companies, whether traditional banks or private lenders, are regulated by the Bangko Sentral ng Pilipinas (BSP). Nonetheless, banks follow stricter regulations and implementations that reduces the chances of small and starting business owners to put up their business.

This is why private lending companies can be helpful. Approval is easier and faster because of the lesser restrictions and requirements imposed.

2) More affordable loan processing fees

Between banks and private lenders, the former has lower interest rates. Here’s the catch: banks can be opportunistic and look for other ways to earn money. At times, they get it from processing fees.

That’s not all. Banks would often deduct the fees from the loanable amount. This means if you borrowed P100,000, you won’t get the amount in full since the fees were already deducted.

This is a different case when you apply in private lenders. Private lending companies like Balikbayad has affordable processing fees and will not deduct the fees in the amount you borrowed.

3) Offers competitive rates 

Banks will say that their interest rates are lower. That’s true. On the other hand, private lending companies provide competitive rates that will suit your financial needs and capacity to pay. The rates may not be lower than what banks offer, but as long as you use the money in the right investment, you won’t even notice the difference.

4) Loan terms are customized according to borrower’s needs

Traditional banks are often subjected to both internal and external audit. This is why it is important that all the requirements set forth by the Monetary Board are complied with. Any lacking documents could delay your loan application and even compromise approval.

This is a different case for private lenders. Loan requirements can be patterned according to borrower – as long as the basic requirements are met such as age and proof of income. In other words, requirements are more flexible and easier to comply with.

5) A good boost in credit history

Banks are strict when it comes to credit history. Anything negative in your credit score could make them think twice on whether or not you are worthy of credit. Thankfully, private lending companies look at it differently, although credit score still matters.

The good thing about borrowing money from private lending institutions is that it allows you to boost your credit history. Just make sure you will fulfill your financial obligations by paying on time and in full and your are good to go.

In case you are looking for a private lending company, consider Balikbayad among your options. It makes lending easier and more affordable for every OFW.

You all have your own reasons why you work abroad. At the end of the day, one of the goals is to send money to your family in the Philippines. After all, all the sacrifices and hard work are for your family as well.

Here’s the challenge: finding a reliable money remittance center that will ensure that the hard-earned money you will send will reach your family’s hands safe, sound, and complete up to the last centavo. There are many fly-by-night remittance centers that take advantage of the OFW’s situation and you don’t want your money to end up with them.

Don’t worry. Here’s a guide on how, what, where, and when you should send money to your loved ones back home:

Choose a reliable and convenient remittance partner

Back in the day, there are few options available that allows OFW to send money back to the Philippines. With the advancement in technology, the options are endless.

The safest way to send money back home is through ATM service or bank remittance. All you have to do is to deposit money on any Philippine banks and your loved ones can get the money upon withdrawal. BDO, BPI, PNB, and Metrobank are some of the stable and reputable banks you can use to facilitate money remittance. Convenience and accessibility are also a big plus, so make sure you consider that when choosing a remittance partner.

Aside from banks, here are your other options:

• MoneyGram, which offers home delivery, cash pick-up, ATM service through LBC ATM Card, or online transfer.
• Western Union Philippines, although the fees can be more expensive compared to other remittance options.
• Xoom Money Transfer, wherein although money transfer is safe and fast, the exchange rate is lower and it will take time before your family will receive the money.
• TransferWise, which is cheaper than Xoom and transfers money using real-time exchange rate.
• Online transfer services such as Paypal wherein transfer is real-time, but fees may be higher and exchange rate is lower than the actual.

Take note of the current exchange rate 

This is crucial. The exchange rate now is different two days ago, which is why it is important to pay attention to the trend. After all, it could affect the amount of money you will be sending and a few centavos could make a difference.

It may be tricky to do this since it requires strict monitoring and you may not have enough time to do so. Nonetheless, pay attention to what is going on around you since it will help you determine whether it is best to hold on or remit your hard-earned money.

Postal service is a big no-no

There will always be a risk of losing money while in transit and you surely don’t want that to happen. At the same time, it will take time before it reaches your loved ones.

Maximize your mobile phone

Let’s say you don’t have access to Internet all the time. That’s fine. You can always rely on your mobile phone to send money to your family. Globe and Smart has remittance services for OFWs that allows you to remit within a few clicks. This way, you can still send money anytime, anywhere.

Always compare the services available

From the list of remittance partners enumerated above, it only shows that there are lots of options you can choose from. Before you decide on anything, make sure to compare the services offered by remittance centers. Know their policies on exchange rates, remittance fees, speed of transfer, and convenience to help you decide which is the best remittance partner for you.