OFW Loan in the Philippines: an Overview

Overseas Filipino Workers have been called our nation’s modern day heroes. With their remittances reaching around $26B last 2015, OFWs are the lifeblood of our economy. At the very least, they should have the same financial stability that they make possible for our country.

How well do we really know OFWs? There are currently an estimated 2.3M OFWs according to the Commission on Overseas Filipinos. 45.1% of OFWs come from Luzon, while 41.7% are from the Visayas, and 13.2% hail from Mindanao. There are slightly more women than men, and more than a quarter of OFWs are 30 years old and younger. More than half of OFWs are deployed in the Middle East.

Sadly, the macro numbers overshadow the fact that a lot of OFWs are struggling financially. Some overseas Filipinos end up running away from a debt that they made overseas. There is a lot of financial pressure on an OFW as he or she is usually the family’s primary bread winner. There are also those who fall prey to loan sharks or high-interest loans before they even leave for abroad.

The Philippine government has launched programs to give financial assistance to OFWs and their families, including loans and training that will help them establish a stable livelihood in the Philippines.

The great news is that there are a lot of legitimate, low-interest loan options for OFWs from banks and credible lenders in the Philippines. Below, we list some of the top financial institutions in the country who offer personal loan, home loan, auto loan, and business loan options for overseas Filipinos:

Banks and Lenders’ Loans for OFWs

1. Banco De Oro (BDO) Asenso Kabayan

BDO’s Asenso Kabayan loans is especially for OFWs. If you have a BDO savings account, you can avail of their personal loan for as much as Php 1M. The interest rate is one of the lowest in the country at an estimated .84% a month (depending on the bank’s final assessment), as well as a maximum loan term of 3 years. 

If you are wanting to invest in a home in the Philippines, you can also apply for their Asenso Kabayan home loan for as much as 80% of the property’s appraised value. The interest rate is reasonable at around .57% a month, payable for a maximum of 20 years.

BDO also offers auto loans for overseas Filipinos at an interest of around .87% per month, with a maximum term of 6 years. The maximum auto loan amount is 80% of the vehicle price.

2. Bank of the Philippine Islands (BPI) Personal Loan for Land-Based and Sea-Based Overseas Filipinos

BPI has created unique loan offerings fit for OFWs. Sea-based OFWs can get a fast-process loan with minimum documentary requirements for as much as Php 300,000. Because the processing and requirements are more lenient that most bank-originated OFW loans, the interest rate is a bit higher at about 2.46% a month for a maximum loan term of 9 months.

Land-based OFWs can also get a personal loan from BPI. While the requirements and processing time is standard, borrowers can get as much as Php 1M with a lower monthly interest rate of 2% and payment terms of up to 3 years.

3. Philippine National Bank (PNB) Own a Philippine Home Loan and Global Filipino Auto Loan

Are you based in Singapore but interested in purchasing your dream home in the Philippines? PNB’s Own a Philippine Home Loan may be for you. You can borrow as much as 80% of the condo unit or house and lot value, with a maximum loan term of 20 years.

Overseas Filipinos based in Hong Kong and Saudi Arabia may avail of PNB’s Global Filipino Auto Loan. You can borrow as much as 8% of the vehicle price, payable in 5 years. The processing time is also fast at around 3 to 5 days after submitting complete documents.

4. China Bank Home Plus Loan

With around .90% interest rate per month, China Bank’s Home Plus Loan is a good choice for overseas-based Filipinos who want to invest in a house back home. While the maximum loan amount is standard at 80% of the real estate property’s appraised value, OFWs can enjoy a longer maximum term of 25 years. This frees up your income for other types of investments.

5. Landbank OFW Reintegration Program

A lot of overseas Filipinos are saving up so they can come back home and start a business as an alternative way to support his or her family. After all, nobody wants to be away from home longer than necessary.

If you are an OFW looking to return to the Philippines and start your own business, Landbank’s OFW Reintegration Program is for you. With a maximum loan amount of Php 2M at as low as .65% interest a month, payable in as long as 7 years, this loan will help you build and secure a great future for you and your family without needing to live apart.

6. United Coconut Planters Bank (UCPB) Home Loan

UCPB is another bank that offers Home Loans specifically for OFWs. You can borrow as high as 80% of the appraised value of the house and lot, condo unit, or any other real estate property that you want to purchase. This home loan has a maximum payment term of 20 years.

7. Global Dominion Pinoy Abroad Loan

As one of the country’s most trusted and credible private lending institution, Global Dominion has been a reliable financial company for land-based and sea-based OFWs who want to avail of a loan before or in between deployments. To complement their OFW loan offerings, they have recently launched a loan product specifically for OFWs who are currently based abroad.

With Global Dominion’s Pinoy Abroad Loan, OFWs can borrow up to as much as Php 250,000 with an interest rate of 1.99%, payable in 1 year. This is great news to OFWs who want to avail of a loan from the Philippines, but are fulling their employment contract overseas.

Apply for a Pinoy Abroad Loan and other OFW loans online

Want to Apply for an OFW Loan in the Philippines?

We at Loansolutions understand the unique needs of OFWs and their families. We are the Philippines’ largest loans market of banks and legitimate lenders offering loans for OFWs. Our friendly Loansolutions Agents will help you with your loan inquiries, application, and processing your documents and requirements. We make it possible for you to apply for an OFW loan in the Philippines online, wherever you are in the world. The best part? We’ll do it for you 100% free of charge.

Apply for a low-interest OFW Loan in the Philippines