OFW Loan – A Lifesaver In Times Of Dire Need
Working abroad, and being away from your family, is never easy.
But many people take the risk of being away from family, friends, loved ones and all things near and dear to earn big bucks. After all, big money can save a family from hunger and deprivation.
In all, the upsides and downsides of being an overseas Filipino worker (OFW) probably balance each other out.
Immediate Money Needs
Despite sending money to the family back home in the Philippines on a regular basis, there will still be instances when financial difficulties will strike.
It could be an illness, a huge car repair, a substantial renovation on the house, or an important school project even, that will require immediate cash. Whatever the cause or reason, the bottomline is money is needed – pronto.
During such trying times, it is good to know that there is a loan product termed the OFW loan.
An OFW Loan Can Save The Day
Yes, an OFW loan is actually a lifeline extended to Filipinos working abroad. Even if they are not in the Philippines, they can still provide for the needs of the families they have left behind.
An OFW loan is often extended by credible financial institutions to OFWs, as long as they meet certain criteria.
Basic Requirements To Secure An OFW Loan
Normally, as the principal and OFW, you will be asked to submit the following: a valid identification card; picture sized 2×2; original Proof of Billing; Contract of Employment; Certificate of Employment; POEA Information Sheet; Visa to the country where you are employed; Passport; OEC/E-receipt.
Often, you do not have to submit the Contract of Employment, the Certificate of Employment and the POEA Information Sheet all together; any of the three will suffice.
As for the Proof of Billing, if the utility bills are not under your name, you will be asked to submit proof of residency.
Proof of residency can be in the form of valid IDs with address or proof of remittance.
Loan companies also impose a salary ceiling. The salary ceiling could be in the vicinity of Php15,000.
More Requirements To Secure An OFW Loan
Often, under this kind of financial arrangement, you , as the borrower, will open an PDC or a Joint Account with a co-borrower.
Your spouse or an additional co-borrower may also be required by the lending institution.
OFW Loan – Timelines
The good thing about this kind of loan product is that it can often be processed in one day. Thus, pressing money needs will be promptly addressed.
Interest rates may also be either 1.5% per month or 3.75% – as a borrower, you may select a rate package depending on your needs and capability to pay.
Paying off said loan often takes three to 12 months.