Jefanie Genilla
Working abroad is a dream for most Filipinos, considering the attractive salary offered in other countries. Besides, the opportunity to travel is hard to miss. However, getting access to cash that will be used for processing documents and transportation is the main hurdle to beat prior to the departure. An OFW loan is the go-to financing solution for those looking to work abroad. The problem now is that lenders are hesitant in letting OFWs borrow money for three main reasons:
An OFW’s term and nature of employment may change depending on the employer. OFWs have little or no control at all on their contract and may be prematurely terminated.
OFWs may be subjected to any foreign policy changes that affect their salary rate and schedules.
Emergencies (e.g.., natural calamities, insurgencies, political tension) may strike the country they’re working in and they can’t go back if their working environment proves to be inconvenient and unfavorable.
In short, lending to an OFW is too much of a risk for lenders to do, considering the uncertainty of their working conditions. However, there are actually banks and private lenders offering financing solutions at a favorable rate. Here are the top 3 ways to secure a good OFW loan deal:
- Apply with a co-borrower. Ask one of your nearest relative to be your co-borrower. Preferably, ask someone with a stable income and has a good credit rating. This will give the banks added assurance that you can pay off your loan on the set deadline.
- Partner with a reliable loan solutions concierge. The best thing today is the availability of comparison portals and concierge services that allows users to shop around for the best deals on the market. Loansolutions PH is one such service. It offers guides, tips and application processing portal that pitches the borrower’s application to a wide range of providers.
- Present one of your properties for collateral. Your home, piece of owned lot or car can all be good collateral to present. Just make sure that you can really pay off the loan to avoid repossession.
- Submit a complete set of paperwork. Banks will approve your loan based on your creditworthiness. So submit all your documents showing your income range, employment contract and other relevant files. Make sure to pass your credit and background investigation docs to speed up your approval.
Overall, ensuring you’ll get approved for an OFW loan requires research and strategy. The best move would be to compare your loan options with the help of Loansolutions and their network of lenders. Click here to get started to assist you in getting the funding needed to work abroad.
