All available OFW loan information is collected for you. Choose the best organization
«Overseas Filipino Worker (OFW) is a term often used to refer to Filipino migrant workers, people with Filipino citizenship who reside in another country for a limited period of employment.» Going abroad to work is a dream come true for many Filipinos, especially if you live in Cebu or other provinces.
The thing is, a lot of job agencies in the Philippines require a placement fee, which covers the workers initial expenses in the destination country, processing the work documents, and purchasing the plane tickets. As such, an OFW loan is necessary.
As such, a Filipino who is looking forward to go abroad may have a lot of questions, which we will attempt to answer to help you out in choosing the right OFW loan lending company. For example, is there a one day process for this? How much can you get as an OFW loan?
Let us take a look.
OFW without collateral loan is a kind of credit that may be processed in as fast as one day. OFW loan is specially designed for people who are already working abroad, or for those who are just about to go abroad.
Personal credit requires no collateral, as the lending company has ties with the work agencies that can vouch for the credit applicant’s capacity to pay. Today, many private lending companies are offering this type of credit, so you can use it instead of OFW loan.
Yes, private lending companies are faster and less hassle with them, especially for a loan without collateral. These companies have competitive rates, and they were put in place as alternative to banks that provide OFW loan and can be hassle.
Private lending organizations in the Philippines are great alternatives because they are funded in different ways. Although private lending companies in Cebu may charge higher rates, they are easier to deal with and they do not need you to go through a lot of hoops just to get approved.
Yes, you should really consider applying for OFW loan without collateral from private companies. Here are the benefits of dealing with them as opposed to banks.
Yes, private lenders are legit. You cannot put up a lending business without registering to the SEC.
Examples of these document are:
Before these lending companies can operate, they have to secure the permits from different government offices, and you can see these documents hanging on their walls.
For one day process lending companies, the maximum you can OFW loan depends on why you are loaning money. Again, an erstwhile Filipino overseas worker cannot be approved for a credit – you must be active or at least have proof that you are returning to work.
In that case, you can get OFW loan anywhere between 300000 – 800000 PHP, with a 1 day processing if available. Some companies will even lend you up to 2 million pesos, especially if you are a land-based worker, which means you are not a sea man.
Different institutions have different limits, so what you can get from PAG-IBIG is different from local financial organizations.
Before you can borrow money, there are some documents that you need to prepare before they release funds, such as, but not limited to:
These are basic requirements for an OFW loan, and not all may be asked. If you have them, you may avail of the 1 day processing since all your docs are complete. On the safe side, just prepare these documents before they release funds and you apply for an OFW loan.
The process is simple. All you have to do is to go to the office, apply for an OFW loan, and sign the application document. The clerk will assist you and ask you to provide the necessary documents. Make sure you bring the original copy and the photocopy.
The typical interest rate of the OFW loan is 1.5% per month, but this rate is going to vary according to the amount and the tenure of the OFW loan. You can borrow and pay the credit within 12 months, or even up to 84 months if the amount is huge.
Check the website of the company offering the OFW loan and see their interest rates online. Also, take note that PAG-IBIG rates typically smaller than banks, and private lenders can compete with these rates.
This loan is provided by OWWA – Welfare Administration OFW, as an alternative to labor migration. The loan is issued for starting a business. In order to Filipinos, who working abroad can return home and start their own business. The government supports this initiative as it contributes to the economic development of the Philippines.
OFW loan in OWWA terms and conditions:
For partnerships, coops, and corporations.
The payroll loan is provided by OFW by the Social Security Fund. SSS provides 2 types of loans: 1 month salary and 2 months salary.
The loan amount for 1 month will correspond to the average of the last payments for the year. And the loan amount for a period of up to 2 months is equal to twice the average value over the last 12 months. The maturity can be up to 24 months. Interest rate is 10% APR. Service fee – 1% of the loan amount.
Borrowing from privacy lending companies is the fastest wat to go. No co maker is required and you can even apply online yourself or use online assistance. They process your loans faster, and you can get an answer in as short as one day. And with results as fast as that, the assistance you get can help you make commitments to your work agency and start processing your documents so you can leave immediately.