Can Your Spouse, a Housewife, Apply for a Loan?

In an OFW-Filipino setting, the husband works abroad while the wife stays at home to look after the kids. Apart from that, you, the housewife, are also left with an equally important task: budgeting your husband’s income. 

Apparently, many housewives will say that their husband’s income is “sapat lang” or just enough to last them through the month, or at times, not even enough. Then here comes emergency situations like your child getting sick or payment of school fees. Apparently, your husband can’t immediately send money, thereby forcing you to borrow from other people.

You have several options:

• Family or friends, common and cheaper since there is no interest charged, although there is no assurance that they will lend you money.
• Pawnshop, especially if you have valuable items you can pawn, but there will always be a risk of losing them.
• Loan sharks, otherwise known as 5-6 who charge with higher interest rate.
• Licensed lenders, which you will learn more about below.

Among these options, borrowing from licensed lenders can be your best bet. It is legitimate, safe, and you are sure that the interest charged is competitive and according to the existing rates.

Here’s the bigger question: Can housewives, whose main source of “income” comes from remittances, apply for a loan?

The answer is yes, and it is called allottee loan. 

All about Allottee Loan 

An allottee loan is a type of unsecured loan that allows qualified individuals to borrow even without collateral. This means the housewife (yes, you) will file the loan application and submit required documents to prove that you are a beneficiary of an OFW.

As soon as you submitted the documents, the lenders may grant (or reject) you a credit according to your capacity to pay. The loan will also be payable within three to six months, or more, depending on your relationship with the lender.

Below are the basic requirements you need to submit when applying for this type of loan:

• Latest OFW contract with POEA validation
• Husband’s valid and latest Overseas Employment Certificate (OEC)
• Valid passport
• Working visa (for land-based workers) or Seaman’s Book (for seafarers)
• Allotment certificate bearing your name as an allottee
• Proof of relationship to the OFW, which in this case, a Marriage Certificate
• Proof of billing
• Valid government-issued ID

Some lenders may require you to submit more documents apart from what was enumerated above. Make sure to ask for a list of requirements first so you can prepare the documents before submitting your loan application.

Does Balikbayad offer Allottee Loan? 

Unfortunately, we don’t.

The danger of applying for an allottee loan is that some OFWs were surprised that their spouses applied for a loan without their consent. This could create trouble for their family as it creates both a strain in their relationship and their financial standing. At the same time,  it creates trouble for us, lenders, because we have to demand payment for this type of obligation while understanding your family’s financial capacity.

Nonetheless, we allow existing borrowers to apply for a loan even if the OFW is abroad as long as we are able to get a consent from the OFW himself, allowing such loan.

Tips to Remember when Applying for an Allottee Loan 

• Think before you submit, the loan application that is.
• Determine whether there is really a need to borrow or perhaps, you can postpone the expense.
• Inform your husband about your intent to apply for a loan. This will avoid the element of surprise and possible strain and financial trouble in the family.
• Prepare the necessary documents. This will make loan processing easier and faster.
• Make sure to pay on time. This will prevent any negative effect on your credit history.