Loans that will work for every OFW

Loans can be a tricky thing. For most, loans are a way to achieve something that they could not have with their current resources, may it be to send their kid to a good school, buy a new house, or for OFWs, to comfortably move back to the Philippines or provide their family back home with what they need while they adjust to life abroad. Michael De Guzman attributes loans to his better life. When he went off to work as a mechanical engineer in Dubai, his goal was to move his family to better living conditions. While he was away, before he earned enough to buy a new home, Typhoon Haiyan destroyed his home in Marikina. With his higher salary, he was able to obtain a home loan targeted towards OFWs. With the loan, he got his family into a new home, helped them achieve a better life that they could not have achieved without the loan.


The problem with loans is that different loans fit different types of people. Loans can come from banks and financial institution, credited online loan facilities and even pawnshops. What's important for OFWs to know is where to find the right type of loan for what they need. OFW Guru created a list of loans with the important details needed for any OFW to decipher what loan to apply to.


Specialized OFW Lenders typically are quicker to process and have less requirements than banks. It's an option for an OFW who is seeking a loan that is not of a huge amount since OFW private lenders base the loanable amount from the OFWs base salary; however, while it's easier to get a loan, the interest rate may be a bit higher compared to banks.



Name of Institution
Balikbayad
123 Lending Corp
Zazu
PJH
Loanable Amount
2x Salary2x Salary
2x Salary
2x Salary
Effective Interest Rate
5.0% - 6.0% pm5.5% - 10.4% pm
6.4% - 7.7% pm
11.5% pm
Miscellaneous fees and requirements

No Loan Fee

No MinB

Loan fee

MinB for Checking Acct

Loan fee

MinB for Checking Acct

Loan fee

MinB for Checking Acct

Available Tenors
6-18 months
3-12 months
3-18 months
3-15 months


Balikbayad - OFW Loans Made Simple


Balikbayad is a new player in the OFW loan industry. They focus on land based OFWs and Seaman Loans only and aim to attract customers through faster and better service. Their streamlined requirements reduce hassle in getting a loan. Applications are done online.


For more information, check out:



Balikbayad - OFW Loan


Zazu


Zazu is a lending company that aims to provide Overseas FIlipino Workers (OFWs) with a reliable and convenient loan company prior to their starting their new job abroad. The process for obtaining a loan for Zazu is all done online, there are few requirements and has excellent customer service. The vision Zazu has is to become the market leader in offering OFW loans.


For more information, check out:


http://www.zazu-lending-corp.com/


PJH


PJH Loans is the premiere lending company for OFWs. PJH prides itself as not just a lending company but will support their clients from pre-departure, employment and reintegration. PJH’s employees will guide their clients through opening a bank account, acquiring loans, and in returning back to the Philippines.


For more information, check out:


http://www.pjhlending.com/


123 Lending


123 Lending Corporation is an OFW lending company that began started operations in March 2013 in Cebu an quickly rose to become the leading lender in Cebu to the OFW market with their same day processing and release for loans. Since then 123 Lending have expanded to offices in Manila and Cagayan de Oro. They plan to continue their success with the 3 steps they have been doing, to provide a fast, easy and friendly lending service.


For more information, check out:


http://123lendingcorp.com/





Banks are the traditional and safe route to take any type of loan. Banks have OFW specific loans that meet specific needs such as Auto loans and house loans. Bank loans also allow customers to borrow up to a higher amount. Aside from this banks often have a lower interest rate. What's difficult about banks is that they ask for a lot of requirements that need to be met that not every OFW can meet.




Name of Institution


BDO

Loan Name

Personal loan

Auto Loan

Home Loan

Business Loan

Loanable Amount

up to 3M, minimum 10k

100,000 to 70%of appraised value of vehicle

500,000 or up to 80% of the appraied value of land

1,000,000 up to 20,000,000 based on appraisal of collateral

Interest Rate

2%

Interest rate is set by management and computed using the add-on interest method

5.50% up to 11.50% based on fixing period

8.00% to 11.00%

Pay Terms

3,6,12,18,24, 36 months

1 to 6 years

up to 20 years

1 to 10 years


BDO has always supported the financial growth of OFWs. The BDO Asenso Kabayan Program provides OFWs with the means to manage their finances, may it be in investing in a new vehicle, buying a new home or starting a business venture. BDO stands out for the lower interest rate it has on its loans and a high loanable amount. 


For more information, check out:

https://www.bdo.com.ph/personal/remittance-services/asenso-kabayan-program


Name of Institution

PSBank

Loan Name

Auto Loan

Flexi-personal loan with Prime rebate

Home Loan with Prime Rebate

Home Construction Loan

Business loan with Prime Rebate

Loanable Amount

minimum of 100,000

20,000 to 250,000

500,000 up to 25,000,000, 80% of the property's appraised value

revolving line of credit during contruction and renovation, min or 500,000 or up to 80% of appraised value of property

minimum of 100,000

Interest Rate

6.5% to 36.1 % based on payment period

2.5% for revolving line of credit, 1.75 add on for term loan

6.0% to 9.75%

6.50%

7.0% to 9.0% based on repricing cycle

Pay Terms

12 to 60 months

24 to 26 months

up to 10 years for residential lot, 25 years for house, townhouse, condo or duplex

up to 1 year, renewable every year up to 25 years

interest repricing, monthly, querterly, semi-annually ad annually


PSBank provides many options for OFWs to achieve their financial goals through the many services they offer from remittances service to savings account, and of course, loans. PSBank covers the basics for loans, car, home and business loan. What sets PSBank's loans apart is that the loans come with Prime Rebate, which allows customers to earn savings when they make early or excess monthly payments.


For more information, check out:


http://www.psbank.com.ph/psbank-ofw-products-and-services.aspx


Name of Institution

Land bank

PNB

Loan Name

OFW Reintegration program (Business Loan)

Global Filipino Auto Loan

Own a Philippine home loan

Loanable Amount

P300,000 up to P2M

200,000 up to 70% of vehicle purchase price

up to 70% of verified selling price

Interest Rate

7.50%

Interest rate is set by management and computed using the add-on interest method

9.00% for 10 years

Pay Terms

Based on cashflow, not exceeding 7 years

max term is 48 months

20 years for purchase of lot and construction, townhouse, condo and apartment unit, 10 years for purchase of lot and home improvement

Miscellaneous Fees/ Collaterals


Chattel mortgage fees, Comprehensive insurance


Applicable Countries


Hong Kong and Saudi Arabia only

Singapore, Japan , New York and Los Angeles



Landbank aims to help OFWs comfortably move back into the Philippines with their OFW Reintegration Program. the OFW Reintegration Loan is mainly a business loan that aims to help OFWs returning to the Philippines find enterprise opportunities on a sustainable basis. This is a project with the Overseas Workers Welfare Administration (OWWA).


For more information, check out:


https://www.landbank.com/OFW-RP


The Philippine National bank has been creating original products and services for the global Pinoy. For OFWs, they have the Global Filipino Auto Loan and the Own a Philippine Loans. The Own a Philippine Home Loan can be used or buying a lot, lot and house, townhouse or apartment, as well as, home reconstruction and renovation.


For more information, check out:


http://www.pnb.com.ph/index.php/global-filipino/loans-and-investments/global-filipino-auto-loan