How Much Can You Borrow in an OFW Loan?
This is your go-to guide in determining the amount you can borrow as an OFW.
As in all other types of loan, there are different factors to be considered before the lender can grant you the amount you are allowed to borrow. If you are specifically aiming to apply for an OFW loan.
Here are some of the factors:
- Your monthly salary. This is the top priority lenders verify before granting the loan amount to the borrower. It must be sufficient and stable to cover for his or her personal expenses, to provide for the family’s monthly remittance (if applicable) and of course to cover the dues for loan repayment. To give you an idea, if an overseas worker earns P15,000 a month, you can up to borrow P40,000. If your monthly income is P100,000 a month, P300,000 loan amount may be granted by the lender. Furthermore, the structure of the loan repayment tenure will also be determined by your monthly salary.
- Your employment tenure overseas. Mostly lenders consider OFW loan applicants with at least 2 years of work history abroad. This is an indication that the borrower has a regular source of income. However, good news is there are also some lenders who allows first time OFWs who are just about to leave the country but it is solely dependent on the lender’s discretion.
- Your employment history. Banks or lending companies will also look at your employment history as a determining factor of the loan amount. Ideally, lenders want to see that you have stayed in your industry and had a very stable employment.
- Your credit history. In addition to those factors mentioned above, how you managed your credit history and loan repayment to your previous lenders will also be checked. Your new loan application’s amount may be higher if you have a proven good credit history.
- Your age. The age of the OFW loan borrower is one of the significant factors too. The eligible age most of the time is between 21 years old to 59 years old at the time of loan maturity. If you are beyond 59, there might be other loan types applicable for you.
- Other factors. Depending on the financial institution and the type of loan you want to avail, they might also put your assets into consideration. Of course, the higher the loan amount and how long the payment term will be, might require some collateral. Moreover, some lenders might also consider the country where you are currently working. This is because in some foreign countries, there might be some shifts with the policy for migrant workers or there might be an ongoing crisis in that country at the time of application.
With all those factors mentioned above, note that your exact borrowing capacity might vary, apply first and then find out.
Once you have successfully secured an OFW loan, make sure to pay on time and in a consistent manner. So, for the next time you might need another loan, your lender will be there to grant your desired loan amount right away.