Understanding Personal Loans and Personal Loan for OFW in the Philippines
A personal loan is a type of loan used for general purposes. You can use the money for practically anything you want (Some lenders restrict what you do with the funds, though!). If you’re an OFW and you’re a bit short on cash, then you’re in luck. Many banks and firms offer great personal loans for OFWs in the Philippines.
Why Get Personal Loans
Before applying, though, know that personal loans for OFWs in the Philippines are like double-edged swords. True, it can provide substantial financial assistance. But if not used right, it can leave you deep in financial trouble. Thus, proper consideration must be taken before you decide to get a personal loan. In any case, you need to use the funds for the right purposes, such as:
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- To pay off high-interest credit card debts
- To consolidate multiple small debts
- To fund home repairs or improvements
- To compensate for your children’s schooling
- To meet for emergency medical bills
- To finance a planned business
- To develop yourself professionally
- To cover funeral expenses
Where to Get Personal Loans in the Philippines
Once you have decided to apply for a personal loan, the next thing to decide is where to get it. As mentioned above, many leading banks and lending companies offer personal loans in the Philippines for abroad workers. Check out three of them below.
UCPB YES Loan
- Interest Rate: 1.59% monthly
- Minimum Required Income: Php 25,000.00
- Collateral or Guarantor: none
- Loanable Amount: Php 50,000 to Php 1 million
Chinatrust Personal Loan
- Interest Rate: 1.39% monthly
- Minimum Required Income: Php 15,000.00
- Collateral or Guarantor: none
- Loanable Amount: Php 20,000 to Php 1 million
Global Dominion Financing Incorporated
- Interest Rate: 1.3% monthly
- Minimum Required Income: Php 20,000.00
- Collateral or Guarantor: must have a co-borrower
- Loanable Amount: up to Php 2 million
How to Get Personal Loans for OFWs in the Philippines
Make a list of personal loans in the Philippines for abroad workers and compare them with each other. That way, you can pick the one that would suit you best. But if you’re already done with that, the next thing to do would be to apply for the loan itself. Now while these steps could vary depending on the lender, they generally follow this 5-step procedure.
- Complete the application form (some can be accomplished online).
- Get all the requirements (e.g., Filipino citizenship, valid IDs, proof of income, etc.).
- Submit the application form and requirements to the bank or lending company.
- Wait for the bank or lending company to process and approve your application.
- Get the money from the bank or lending company.
Tips to Increase Your Chances of Approval
Take note, though, that while it’s easy to apply for a personal loan in the Philippines for abroad workers, getting it approved is an altogether different story. Still, there are ways for you to increase your chances of getting okay-ed by the bank or lending company. Check them out down here.
- Improve your credit score. The stronger your credit score is, the higher your chances of getting approved.
- Borrow an exact amount. Aside from making the lenders feel more at ease, applying with an exact amount would also allow you to minimize your interest rates.
- Organize your financial paperwork. So the bank or lending company would have all the relevant information needed to approve your loan application.
- Be of good character. Because nobody would want to lend money to shady people.
A Must-Read for OFWs
Whether you’re an OFW in the country or out, you need to learn how personal loans in the Philippines work. So educate yourself, and allow this article to bring you up to speed.
