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Can an OFW Apply for a Loan in the Philippines?

Updated on Apr 09, 2020
Can an OFW Apply for a Loan in the Philippines?

Are you an Overseas Filipino Worker (OFW) and you need a little boost in your finances? Whether you need the cash for emergency expenses or you want to jump-start your way to being an entrepreneur even when you’re away, one great way to reach this by getting an OFW loan. While the process may be more complicated for them than normal applicants in the Philippines, it’s worth knowing the steps to streamline your loan application process.

Ready to apply for an OFW loan? We’re here to cover the most common questions you have regarding loans for our modern heroes.


Can an OFW get a loan?

Yes. Whether you’re currently in the country for vacation or you’re working overseas, OFWs can apply for a loan. In our previous article, the only way for OFWs to get a Philippine credit card is by applying for a secure one, this isn’t the case for OFWs.

Private and government-owned banks, as well as OFW-related government corporations, have created specialized loan solutions for overseas Filipinos. This way, it will be easier for them to get funding for whatever reason they have—wherever they are in the world. However, the steps won’t be easy because of the additional requirements as well as the logistics.


Who are eligible to apply for Overseas Filipino Workers loans?

Before you even think about gathering your documents, you need to check first if you’re eligible to apply for OFW loans. Make a checkbox of the following and see if you will get every one of them:

  • Must be at least 21 years old
  • Must not exceed 60 (in some cases 70) years old when the loan reaches it maturity
  • Must have an income of between 40,000 PHP and 50,000 PHP
  • Must be employed stably for at least two to three years
  • Must have an immediate family in the Philippines who will serve as the co-borrower


What are the most common requirements for OFW loans?

Like normal loan products in the Philippines, OFW loan applicants are required to submit a number of documents that will prove their identity, employment, and compensation. To help you make your application much more convenient, here are the most common documentary requirements lenders ask from OFWs:

  • At least two valid IDs (including OFW-related IDs like OWWA ID, Seaman’s Book, Philippine passport)
  • Consularized certificate of employment
  • Copy of visa
  • POEA overseas employment certificate
  • Plane ticket and flight details
  • Proof of remittance
  • Proof of billing
  • Proof of residency
  • For seafarers, the latest crew contract

Depending on the sufficiency of your documents, lenders might require you to send additional ones to increase your chances of approval. Just make sure you have everything you need on hand to avoid the pains of application.


What are the best loan products for OFWs?

Of course, there is no one-size-fits-all solution for an OFW’s financial woes. Depending on where your funds will be used, there are specialized loan products for your needs. If you need to find the right OFW loan for you, we’ve got you covered. We have compiled a chart using loan type, amount, tenure and interest rates. It covers Salary, Home, Personal, etc. For Auto loans, the maximum loan amount is up to 80% of the car’s total value and interest will depend on the tenure.

best loan products for OFWs

If you’re an OFW, don’t worry about getting a loan because there are a lot of options for you out there. Once you think of applying for one, make sure to read everything about the loan you’re looking at, gather all the documents, let your office and co-borrowers know that a credit investigator will contact them, and be prepared to answer their inquiry. And if you are sending money to the Philippines for a down payment, make sure you compare the top money transfer companies to make sure you are maximizing every cent. 



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