Seaman’s Loan: An Overview Before Applying

Loans are useful financial products, and they come in many forms – personal, business, OFW. There are also loans offered to a specific profession such as the Seaman’s loan, which is relevant and significant in these times. Filipino seafarers, being part of the heroic OFW community, also deserve to learn what services or products are the best to help them from achieving their financial goals. This loan is one of them.

If you are a sailor, spouse of a seafarer, or related to any sea-based OFW, then you should capitalize on this financial product. Find the right loan provider in your area, be it a bank or a lending company. In case you don’t know about this yet, read how it works below.

What is a Seaman’s loan?

A Seaman’s loan is a financial product that specifically caters to sea-based OFWs: seafarer or seaman. It is also known as Seafarer’s loan, which works like the loan we are familiar with. This type of financing offered by banks or lending institutions is only available to seafarers, serving as additional funds to cover personal expenses and family necessities before their next maritime voyage.

As mentioned, the structure of a Seaman’s loan is similar to a personal loan, and so do the terms. The loanable amount, interest rates, repayment plans, charges may vary from each loan provider, but overall, follow the same concept. Lending institutions understand the life of a seafarer upon offering these loan products that processes are tailored for the benefit of both parties, lenders, and debtors. Thus, the payment term is co-terminus with the seafarer’s contract.

What is the purpose of Seaman’s loan

The purpose of Seaman’s loan is to assist sea-based Filipinos financially in whatever funds could be
beneficial. Some of these reasons are:

Personal loan
Car loan
Housing loan
Educational plan
Allottee loan
business or investment
Home repair and improvement

What are the advantages of a Seaman’s loan?

Here are the benefits of a seaman’s loan:

1. Applicants are narrowed down

A loan that is offered to all attracts many borrowers – all professions and backgrounds. It will take a good deal of time to assess each applicant and determine who is qualified to receive the proceeds. The arduous process may lower your chance of getting approved or the loan becomes too late an aid upon its availability. Seafarers have not much time to wait as they are often aboard. With Seaman’s loan, the applicants are filtered, which will significantly shorten the assessment, approval, and disbursement processes.

2. Convenient online application

The new normal is characterized by streamlined business processes that capitalize on technology and the internet. So, even financial transactions are now viable online. It is truly a time-saver when you can apply for a loan through the web or mobile phone.

3. Accessible nationwide

Because the application can be accomplished online, it is also accessible anywhere in the country. There is no need to travel to a physical office and wait for a line, which can endanger your health at present times due to COVID-19.

4. No collateral

Seafarer’s loans don’t require collateral, and that makes the application easier for you. As long as you’re eligible and have submitted the complete set of documents, the steps are shorter between you and the money you expect for whatever purpose it may serve.

5. Low interest rate

Seaman’s loan has a low-interest rate, but this still depends on where you will owe the cash. It’s best to check the offers from various loan providers and make a comparison so you can get the best deal.

6. Flexible terms

Terms for a seaman’s loan is flexible, especially if they are sourced from private lending companies. The lenders help you find the plan suitable for your finances and habit, aside from more personalized services.