In spite of the belief that OFWs possess ‘lots of money,’ the actuality is that most of them are just trying hard to muddle through, very much like people working in the Philippines. At the time of financial crisis, OFWs might turn to taking the loan. But for that, they need to know the possible credit and loan programs that are available.
There are many possibilities available for the OFWs. Some of them are mentioned below:
Loan Availabilities from Different Banks
Banks like BDO provides personal loan for OFWs. Bank policies vary with the each bank.
For instance, the Personal loan provided by the bank BDO falls under two categories:
OFWs that aren’t suitable for an unsecured loan with BDO is still able to avail the personal loan option, but they’re allowed to take up 90% of deposit account amount.
Depending on the eligibility, OFWs that take a loan from BDO can carry up to P3 millions.
Another great loan program is offered by the PSbank, with many possibilities for the OFWs: including real estate/home loan, business loan, and car loan.
- OWWA Livelihood Development Programs for the OFWs
This program is the joint venture of NLSF (National Livelihood Support Fund) and OWWA. It offers credit facilities and entrepreneurial progress services to the OFWs, organizations and the families of OFWs.
- OWWA Business Loans for the OFWs
OFWs who wish to build up a business in the Philippines, OWWA offers loan program, particularly for that purpose. But the OFWs can’t use this loan for their personal needs. They are required to submit basic documentary along with the feasibility study of the business they are going to do.
The interest rate would be 7.5% per year. Depending on the capacity of paying back, the result of their feasibility study and nature of the business, OFWs can take up to P2 million.
Education, tourism industries, healthcare, and agri-business, are prioritized. OFWs are also allowed to take money to begin trading industries, manufacturing and services.
- OWWA Personal Loans for the OFWs
This isn’t made available yet. However, as per the reports, the bill has already been approved.
During the starting period when a worker is not able to send the remittances, he can utilize this money to leave the funds for his family. This loan can be utilized to cover plane tickets and placement fees, if not paid by the company.
The interest rate would be 6% per year. The OFWs can borrow up to P50, 000. You can even fill the OFW loan application online with banks that provide online login.
- OFW Loan from Social Security System (SSS)
SSS salary loan is available for the current employees of SSS (Social Security System), whether they work abroad and local. Your two months of salary amount is the highest loan amount that you can avail. For instance, if SSS places highest salary amount at P16, 000, then local workers and the OFWs are qualified for the loan up to P32, 000.
OFWs can avail any of the above-mentioned credit and loan programs.