OFW Loan: Qualifications, Requirements, and When Is the Right Time to Get One

Borrowing money is not easy, but somehow, lenders are making it more convenient for Overseas Filipino Workers. This explains why many lenders, both big banks and private financial companies, offer facilities and products specifically for OFWs.

Why do OFWs borrow money?

It could be for the following legitimate and acceptable reasons:

• Buy or invest in real estate property
• Buy a vehicle, regardless if it is brand-new or previously-owned
• Family emergency such as medical emergencies, payment of tuition fee, unexpected increase in prices of utilities

Some OFW families borrow money to afford a vacation, but this is not highly recommended. It is still better to save up for it instead of applying for a loan to accommodate a not-immediate need.

Qualifications for OFW Loan

Lenders have different requirements in accepting applicants, but below are among the most common qualifications every lender is looking for:

• Must be an overseas Filipino worker with existing and valid employment contract. You can either be agency-hired or direct-hired.
• Borrower must be between 21 to 59 years old at the time of the loan maturity. This is a standard requirement imposed by lenders since the said age group is “mature” and “responsible” enough to handle a loan. In case you are in your 60s by the time the loan has matured, co-maker or attorney-in-fact (assigned through Special Power of Attorney) is required.
• There must be a sufficient and consistent salary every month. This is necessary because lenders want to make sure that the loan and monthly amortization will be paid on time.
• Personal appearance since lenders require certain documents to be signed by the OFW-borrower. Nonetheless, there are lenders who allow OFWs to borrow money even if s/he is still overseas. In case you can no longer wait for the release of loan proceeds, SPA is also needed.
• Co-borrower who is of legal age and in good credit standing. Applying with a co-borrower can also increase your chances of approval since lender is assured that someone will be obligated to pay the loan in case of default.

Requirements to be Submitted

Similar to qualifications, lenders have their own set of required documents needed for submission. This includes:

• Philippine passport. If seaman, OFW-borrower must also submit Seaman’s Book.
• Overseas Employment Contract from the POEA
• At least two valid and government-issued IDs
• Billing statement as proof of residence in the Philippines
• Any document that will prove monthly income such as payslip
• In case business is already existing, OFW-borrower must submit at least three years audited and interim financial statements and Income Tax Return
• Collateral or security documents in case of collateral loan. This includes TCT or CCT of the property, OR/CR of a vehicle, receivables, and Lease Contract among others.
• Special Power of Attorney authorizing someone to act on behalf of the OFW-borrower in case the latter cannot be physically present during the processing of loan application

It is important that you check the requirements of your lender and make sure to submit all documents to avoid delay in the processing of loan application.

Balikbayad makes borrowing easier and more convenient for you. Submit your loan application now and we’ll get back to you as soon as possible so you can start using the funds according to your needs.