You must have heard of OFW loans Singapore as an overseas Filipino worker. These loans are helpful when you want to meet personal expenses as a Filipino worker abroad.
This article details everything you need to know, including the types of OFW loans available and the requirements for an OFW loan.
What are OFW loans?
OFW loans are one of the most unique financial products Filipinos working abroad can avail themselves of. Banks, credit unions, and other private lenders have this in their product portfolio to serve OFWs and their families back home for many different needs.
Some everyday needs may include personal, tuition fees, construction of your house, or small businesses. The loans are just a bridge connecting hard-earned work abroad to your goals set out at home.
Importantly, unlike other loans, OFW loans are usually flexible regarding interest rates, considering the unique circumstances one has to face while working overseas.
Lenders understand that you have a steady income; hence, they are willing to work with you despite the distance.
Types of the Available OFW Loans Singapore
Knowing the various kinds of OFW loans Singapore will help you in selecting. Each type mainly has its own terms. Therefore, you have to decide which one suits your goals best.
Below are some of the few OFW loans we offer;
- Personal Loans: These loans are often unsecured for any purpose, such as home repairs or tuition fees.
- Auto Loans: If you plan to buy a car for your family back home, OFW auto loans can help finance the purchase with reasonable payment terms.
- Home Loans: These loans are structured to provide more significant amounts with extended repayment periods.
- Business Loans: If one wants to start or expand their business, OFW business loans will give the capital needed to get the ball rolling.
Eligibility for Taking Out OFW Loans
It is not OFW who is qualified, though, as, at times, the application process is a bit tricky. There are specific prerequisites every lender looks out for to ensure the debt is paid without any hitches.
Usually, you must meet the following eligibility criteria:
Proof of foreign employment
This is the most vital aspect. A borrower must have a valid contract of employment or work visa.
Notably, a certificate of employment would act as proof as a whole that the employment is stable. Notably, a few lenders also prefer an applicant who has continued at least six months to one year in present service.
Age requirements
The minimum age that is considered by most lenders is 21 years.
The maximum age does vary but is ideally taken as 60 to 65 years, which, in other words, means that by this time, the loan would attain maturity in the best case.
Minimum Income
Your monthly salary will also be a significant determining factor in loan approval.
Most lenders put you into some income threshold, which could be required from PHP 20,000 to PHP 50,000 or even higher, based on the loan provider and the amount of money you request.
Good Credit History
While not all lenders require a spotless credit record, having a positive credit history can improve your chances of approval. If you’ve had past loans and repaid them on time, you’re in a better position.
Family Representative
Some lenders would want the appointment of a co-borrower or family representative to oversee locally here in the Philippines on your behalf.
In this way, a resident can manage the loan when necessary.
Conclusion
The key to a successful OFW loan application is understanding the type of loans available and what lenders seek. With the right approach, you’ll be well on your way to achieving your financial goals while continuing to provide for your loved ones back home.
You can contact us if you are looking for additional information on the OFW loan eligibility and requirements.