About 10.2 million Filipinos are working away from their hometown, which constitutes 11% of the legal population of the Philippines. 6% of the UAE population are Filipinos. They work hard to earn a living abroad. To help overseas Filipino workers (OFW), there are Of financial institutions provide loans to realize their dreams. In addition to UAE banks providing different loans for foreigners, there are other ways, such as OFW loans, Filipinos can get financial assistance from their hometown.
The Overseas Workers’ Welfare Administration (OWWA) provides commercial loans to OFW who wish to re-establish their businesses in their own country. OWWA offers a loan line of up to 2 million pesos. The interest rate charged by OWWA commercial loans is 7.5%, and the maximum term is 7. Applicants with real overseas work experience and certifications for corporate development training can visit the OWWA Center and apply.
BPI OFW loan
The Bank of the Philippines (BPI) provides personal loans to Filipinos working abroad. The maximum loan amount offered is P100,000-P1,000,000. To use BPI OFW personal loans, the minimum monthly income must be P30,000.
BDO OFW loan
Euro Bank (BDO) offers personal loans based on mortgage requirements as an optional service of OFW. For secured loans, deposits can be used as collateral. The interest rate on loans is between 1.25% and 2%. The minimum monthly income to use a BDO OFW loan is P10,000.
Pag IBIG Loan
Pag-IBIG OFW provides its members with multi-purpose loans and home loans. Proof of income received by the applicant from the current employer is a mandatory document for Pag-IBIG loans. Pag IBIG Multipurpose Loan (MPL): Filipinos actively participating in Pag-IBIG can obtain multi-purpose personal loans. To use this MPL, applicants need to save at least P4800 per month or at least 24 members. The amount of loans on MPL depends on savings and income. Pag IBIG Home Loan: Pag-IBIG can provide up to P750,000 home mortgage loans for any type of property. Valid Pag-IBIG members with 24 months of savings and a monthly income not exceeding 17,500 Philippine Pesos can apply.
Overseas Philippines Bank
The Philippine government plans to open an overseas Philippine bank branch in the UAE. This will relieve the Filipinos in the UAE. OFB is a traditional bank with regular banking operations. This will be even more beneficial for Filipinos inward and outward remittances and any kind of loan.
Eligibility for any OFW loan
- Applicants must be between 21-65
- Must be real overseas workers
- Must have valid income
- Must work overseas for at least two years
- Monthly income should be greater than the monthly installment