5 Questions You Need To Ask Yourself Before You Apply For An OFW Loan

Being an Overseas Filipino Worker is not easy. You have to be thousands of kilometers away from your loved ones just to seek greener pastures. You also have to adjust to the new environment and make peace with people with different nationalities while battling with homesickness. Even if you are earning in dollars, you will still be bombarded with messages from back home because money doesn’t seem to be enough.

This is why you resort to OFW Loan to help you get through with the expenses back home. This type of loan caters to OFWs like you, which could help you in many things like starting your own business or covering expenses.

But before you apply, there are certain questions you need to ask yourself, which helps boost your chances of approval.

Why do you need to apply for a loan?

This is the first question you need to ask yourself before you apply for OFW Loan. It is easy to say that you need this and that but if you think deeper, do you really have to apply?

Before submitting your loan application, ask yourself first why you need a loan. Ask yourself the purpose of the loan and how it could help you. If you can’t justify your “need” to get a loan, then don’t apply. You might end up in debt – and you surely don’t want that.

Can you verify your personal information?

Identity verification is important for lenders. This tells them that a certain applicant is a real person and exists.

Don’t worry because lenders only ask basic information such as your name, address, mobile number, and employment details among others. It is strongly advisable that you only put honest and truthful information about yourself. Lenders often conduct background checks to verify the information in your application form, so make sure you can back it up.

How much do you plan to borrow?

Did you know that one of the most common reasons why loan application is rejected is unrealistic loan amount?

Before you click “Submit,” ask yourself how much do you really need – and stick to that. Avoid borrowing the maximum amount, especially when you cannot back up your capacity to pay the loan. Show the lender that this specific amount is what you only need and you’re good with it.

Most lenders have online calculators on their websites. Use that feature to check the breakdown and how much you will pay given this particular loan amount and term.

Can you pay for the loan?

This is another important question you should answer before you apply for the loan. The truth is it’s not enough that you earn big and in dollars. Lenders pay attention to your capacity to pay as well.

Therefore, prove your capacity to pay. Show bank statements and proof of income. If you have existing investments, which we assume you have, then present that as well. In case you have a small business whether overseas or back home, make sure you show that as well.

Do you have unpaid loans?

We understand that there are certain situations in life when you just have to borrow money – whatever it takes. The question now is what is the status of these loans?

If you have unpaid loans that dates back years ago, then there is a possibility that your loan application might be rejected. Lenders are very particular with credit history because it shows not just your capacity to borrow money but also how responsible you are as a borrower.

Don’t worry. Existing or unpaid debts does not automatically mean your application will be rejected. Just make sure that these bills are constantly paid and you’re good to go.

Are you ready to apply for an OFW Loan?