Working abroad but have a financial situation back home? If you are a resident of the Philippines, you can choose to apply for an OFW loan. OFW stands for Overseas Filipino Workers, and these loans are meant for people who are working in other countries but need financial assistance within the Philippines. These are not always like a personal loan, but can be a short term advance too. Below are some of the things you need to know.
If you need a long term loan for building a house or buying a car, you can choose to apply for a long-term OFW loan. Such loans are classified into three segments. The first kind of advance is called a sea-based OFW loan, which is meant for seamen, while the second choice is a land-based OFW loan, which is meant for those who are working in other countries. Both these loans can be secured or unsecured, depending on the terms and conditions and the amount of advance. The paper requirements are pretty limited, but you need to have a stable job with the employer with a valid contract. There is also the third kind of loan, which is called Pinoy Abroad Loan. For such advances, you don’t need to be present in the country and can apply online.
Things to check
First things first, you need to check the requirements for application. Besides the basic age (21 years or older), you must have a stable job and a co-borrower, who must be a close relative with a stable income, as well. Also, it is important to check the repayment terms, especially if you intend to repay the loan ahead of the maturity term. The interest rate is an aspect that concerns most borrowers, and to help with that, there are many portals that offer a lot of information on how to apply for OFW. You can get information on the options and lenders, along with tips and suggestions for comparing the same.
If you have any questions, it’s best to look online. Also, ask as many questions as possible, with regards to the requirements. For seamen and those who are working in other countries, it is important and necessary to be present for the application process. Consider your holidays, and choose your co-borrower after consideration. The lender might have a few questions, which must be answered during the application procedure. As for the approval time, it largely depends on the amount, loan term and other factors.