What Can I Spend My OFW Loan On?
OFW loans are included in nearly all banks in the Philippines. OFWs are one of the banks’ targets when it comes to loan transactions. Nowadays, it is easy to apply for any kind of loan you want if you are an OFW. Before you choose what items you are going to spend on your OFW loan, here is a list of things we’ve found to most popular.
A house is a good investment. If you already own one, perhaps you are thinking of how you could maintain or repair it. Maintaining or renovating a house is can be costly, and it could hurt your pocket if you spend all your savings on just this one expense. It is difficult to plan when you do not have enough money, your income is not sufficient, or you do not expect any increase in your salary. An OFW loan can help you with this.
PSBank is a trusted bank offering Home loan for OFWs. The following are the requirements to meet: proof of remittance and pay slips for the past 3-6 months, latest income tax return, certificate of employment, and job contract.
These must be submitted after you have applied for a OFW LOAN, and before you will be transferred the funds.
You can also have a representative submit these requirements as long as he or she has your Special Power of Attorney to do transactions on your behalf. As an OFW who is still abroad, you have to have a co-borrower to qualify for PSBank Home loan.
Whether you like it or not, there is this feeling that Filipinos’ perception of having a car can boost image and personality. In most cases, OFWs choose car loans over a housing loan, which is why a lot banks and lending companies advertise car loans heavily to OFWs.
For BPI Auto Loan, there are 3 steps you should take: Know what car you want, pick your financing program and apply. There is no collateral needed. You just have to meet their qualifications of documents for OFW which includes employment contract, proof of remittance for 6 months and allotment and a certificate of employment with compensation in addition to the basic requirements of the bank.
With OFW loans, you can also use the loan amount to put up your own business or to expand an existing one. It could be your own trademark or a franchised business. Most OFWs usually start on a small business venture, and have a family member operate the business.
The Overseas Workers Welfare Administration (OWWA) is providing an assistance in availing a business loan under Reintegration Loan Assistance Program. This loan can help the OFW start their business or if one already have a business, this program can assist in their business expansion.
An overseas worker can apply for and get a OFW loan for the various purposes mentioned above, or they can also use the loan for more personal reasons, such as paying off other higher interest debts, education fees, for emergency use, and or other events.
For BDO and BPI personal loans, OFWs have to meet their qualifications and requirements in order for them to apply for an unsecured loan, meaning, there is usually no need for the application to sign over collateral in order to get approved.
More info on personal uses of a OFW loan:
- EDUCATION. Filipinos value education and we give our all to fulfill our children’s schooling and shape their future. Spending your OFW loan to tuition fees and educational or college plans is simply a wise decision and its outcome is a lifetime achievement.
- OVERSEAS APPLICATION PROCESSING. There are at times you want to pursue working abroad and you do not have enough money for the processing of your application, an OFW loan can be the answer.
By submitting necessary requirements you can be able to have the funds you need in advance, so that you can in fact transfer abroad. This is a very common use of OFW loans.
- DEBT CONSOLIDATION. Using a OFW loan, you could now pay off all your other debts, and only have the one repayment to make each month.
This kind of loan can be useful if the you are paying down other high interest loans, credit cards or other debts.
A OFW loan for debt consolidation purposes would reduce the amount of repayments you make each month to just one, so it’s easier to manage your monthly budget. But more powerfully, if your OFW loan has a lower interest rate than what your credit cards do for example, you could find yourself paying less in repayments each month.
- EMERGENCY FUNDS. Nobody wants an emergency situation. But just in case there is an emergency, having cash on hand is a ‘must-have’ in every household. Some OFWs want to make sure there is always a solution to any money problem situation.
- WEDDING EVENT AND VACATION. An occasion such as a weddings is a once-in-a-lifetime event for most Filipinos. They give their very best to ensure that it is going to be a wonderful wedding and it is worth spending on. OFW loans are also commonly used to cover the extra expenses of a wedding, and also the honeymoon.