Where to borrow money if you’re an OFW

Where to borrow money if you’re an OFW -diarynigracia

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4 Top Loan Options for OFWs


Working hard abroad without the comfort of your family after a long day is difficult for every OFW. Taking risks and sacrificing everything just to provide their family with everything they want and need. Every OFW wants to earn something as an achievement they can see as the fruit of their hard work and lifelong savings. May it be a house, car, business, or anything you can purchase that you and your family can enjoy. However, there are instances that OFWs need assistance in making this dream come true, and with the help of loans available for OFWs, that dream is only a few steps away.

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Looking for loan assistance available specifically for OFWs can be quite hard, especially if you’re abroad and wants to apply for a loan here in the country. You have no choice but to ask your closest relative to work on it on your behalf. With this guide I have prepared for you, I have enlisted banks and government institutions that offer loans just for you. Now it won’t be that hard searching for what’s suitable for you.



What is an OFW Loan?


Earning and saving might not be enough to afford your and your family’s expenses. A lot of factors have to be considered when budgeting your salary to fit all the costs and expenses that have to be covered in a month. There are your application, employment, and travel costs before you reach the country you’ll be working in, and there’s your living cost and other expenses, which can be a bit expensive compared to when you’re at home and can be a lot for a single person to shoulder. Plus, your family’s home expenses, including your children’s allowance and tuition fees, food and bills, and more.



These tough expenses that you’re going through every month might be complex for you to budget and save enough for emergencies or if you want to earn or purchase something. In these situations, OFW usually looks for financial assistance, like an OFW Loan, to help them get back on track. Loans can be pretty scary since the thought of adding up the monthly dues you have to pay until you pay off your loan can be another thing to worry about. But applying for a loan can help your family in the long run.



OFW Loans are loan programs offered to overseas workers, such as OFWs and Seafarers, which allow them to borrow a certain amount of money that they can use for different purposes, depending on what they need to finance. It can be a personal loan for your urgent expenses, a home loan to build your dream home for your family, a car loan to finance your dream car and fulfill road trip plans, and a business loan to let your family at home have another source of income. Any loan you need can be financed when you find the right one.



Furthermore, some loans have special terms and conditions depending on the borrower’s financial capacity. This can be a higher loan amount or a lower interest rate. Lenders always ensure that the borrower can pay the amount they loaned for, and as your part as the borrower, you should pay your monthly dues on time. Finding the right lender and legitimate OFW loans can significantly help you, and this might be quite hard. To help you with these, I have listed below some OFW loans you can consider if you plan on getting one.



How to Apply for an OFW Loan?


Applying for an OFW loan can be quite tricky, especially while you’re abroad, but seeking help from your family or relatives can help. Looking for a legit OFW loan for you can be both time and energy-consuming, but I have taken care of that by giving you some OFW Loan options that you can consider. However, after looking at the loan options I have provided, you must ensure that you’re qualified for the loan they offer. Applying for an OFW loan doesn’t mean that being an OFW qualifies you instantly. Some loan institutions require OFWs to work for at least a certain amount of years before being eligible to apply. Checking if you’re eligible is a must before going on to the next steps since not complying with their eligibility requirement can disqualify you.


Once you ensure you’re qualified for the loan program you’re applying for, check all the required documents you must submit and prepare them. Ensure all the documents are accurate and complete for a faster application process. Aside from the required documents, look into the other details they may ask you. This varies depending on the loan you’re applying for. It can be collateral to back up your loan or a good credit score.


For a fast and efficient loan application, make sure you’re qualified and have already prepared all the required documents that have to be submitted; they should be correct and accurate, from the valid IDs to the collateral documents, if there are any. Any mistake in your application requirements might delay and lapse your loan application.



Personal Loans


1.     AUB Salary Loan

AUB Salary loan aims to help seafarers to reach their personal goals and secure their family’s future. Qualified seafarers looking for a short-term loan can apply for AUB’s salary loan. This can be of great help since they offer low-interest rates and no advance payments. Nothing to worry about in the application process since they only require a few documents and minimal eligibility requirements.


Loan Features


  • Loanable Amount: up to ₱500,000
  • Loan Term: up to 10 months
  • Interest Rate: starts at 4% per month




  • Applicant must be a Filipino Citizen.
  • Applicant must be at least 21 years old, but age should not exceed 60 years old upon loan maturity.
  • Applicant must have completed at least one employment contract at the time of loan application.
  • Applicant must open an account with AUB
  • Should have at least US $800 gross salary




  • Completely filled out and signed Salary Loan Application Form
  • Photocopy of Employment Contract with POEA Stamp
  • Photocopy of Passport and Seaman’s Book
  • Photocopy of Seafarers Registration Certificate (SRC) or Worker’s Information Sheet (WIS)
  • Allotment Arrangement certified by the company.
  • Plane ticket or Certificate of Departure issued by the manning agency
  • Authority to deduct from AUB account



2.    BPI Personal Loan


Are you in need of extra cash for urgent expenses or other needs? BPI personal loan is convenient to apply for since they offer low-interest rate and do not require you to have collateral or a guarantor. Also, if you’re a credit card holder for at least eighteen (18) months, even from another bank, you don’t have to submit your income documents. If you’re an OFW who’s currently abroad, you can apply for BPI’s Personal loan online. However, you have to be physically present to sign the loan documents once your application is approved. You have a month from the date of approval for you to avail of the loan.


Loan Features


  • Loanable Amount: from ₱20,000 up to ₱2 million
  • Loan Term: from 12 up to 36 months
  • Interest Rate: monthly add-on rate of 1.2%




  • Must be at least 21 years old, but age should not exceed 60 years old upon loan maturity
  • Must be a Filipino Citizen
  • Must have an office or residence landline
  • Must have a gross monthly income of at least ₱25,000
  • Must be employed for at least two (2) years




  • One (1) valid Philippine Government-issued ID with photo and signature
  • Income Documents




Housing Loans


1.     Pag-IBIG Housing Loan


Among one of the lowest loan interest rates in the Philippines for housing loans, the Pag-IBIG Housing Loan is perfect for OFWs who want to make their dream house a reality. Since OFWs are mandatory to be Pag-IBIG Members, applying for this loan is quick and easy for OFWs. Not many eligibility and documentary requirements to worry about, and affordable monthly payments you can pay off.


Loan Features


  • Loanable Amount: up to ₱6 million
  • Loan Term: maximum of thirty (30) years
  • Interest Rate: Pag-IBIG offers a fixed interest rate of up to thirty years. Refer to the table below.
Pag-IBIG Housing Loan Fixed Interest Rate
1 year 5.750%


3 years 6.375%


5 years 6.625%


10 years 7.375%


15 years 8.000%


20 years 8.625%


25 years 9.375%


30 years 10.000%





  • You should have at least twenty-four (24) monthly membership savings
  • You should not be above 65 years old when you apply for the loan and not be more than 70 years old at the maturity of the loan
  • Legal capacity to encumber real property
  • Should have the ability to pass background checks/credit and employment/business checks of Pag-IBIG Fund.
  • Has no outstanding Pag-IBIG Short Term Loan (STL) at the time of the application
  • Has no foreclosed, canceled, bought back due to default, or subjected due to dacion en pago Pag-IBIG Housing Loan.
  • You must update your account if you have an existing Pag-IBIG Housing Loan.




  • Housing Loan Application with your recent ID photo or co-borrower (If applicable)
  • Your proof of income
    • For Overseas Filipino Workers (OFW)
      1. Employment Contract:
        • Employment Contract between employee and employer; or
        • POEA Standard Contract
      2. Notarized Certificate of Employment and Compensation (CEC)
        • CEC written on the Employer/Company’s official letterhead; or
        • CEC signed by the employer (for household staff and similarly situated employees) supported by a photocopy of the employer’s ID or passport
      3. Income Tax Return filed with Host Country/Government

* If documents are in foreign language/s, English translation is required.

  • A photocopy of one (1) valid ID of the Principal borrower and spouse, or co-borrower and spouse
  • Latest and Certified True Copy of the Transfer Certificate of the Title (TCT)
  • If condominium unit, present TCT and certified true copy of the Condominium Certificate of Title (CCT)
  • Updated tax declaration (house and lot) and a photocopy of the Updated Real Estate Tax Receipt
  • Vicinity map or sketch map of the property
  • Additional Requirements by Loan purpose



2.    SSS Direct Housing Loan Facility for OFWs


OFWs working in the private sector who are Filipino nationals but are now a citizen or immigrants in another country, currently deployed with a contract, or a long-term resident overseas Filipino can avail of the SSS Direct Housing Loan. SSS offered the direct housing loan program to help and support the government’s shelter program that aims to provide financial assistance to OFWs to purchase socialized and low-cost housing.


Loan Features


  • Loanable Amount: up to ₱2 million


Housing Loan Type Loanable Amount
Socialized Housing Loan Maximum of ₱450,000.

Low-cost Housing Loan

From ₱450,000 up to ₱1 million

From ₱1 million up to ₱1.5 million

and, From ₱1.5 million up to ₱2 million


  • Loan Term: maximum of 15 years; must be a multiple of 5
  • Interest Rate:



Loanable Amount Interest Rate per Annum
Maximum of ₱450,000 8%
From ₱450,000 up to ₱1 million 9%
 ₱1 million up to ₱1.5 million 10%
 ₱1.5 million up to ₱2 million 11%





  • A certified Overseas Filipino Worker
  • An OFW that is a voluntary SSS member
  • Should have at least thirty-six (36) months of contribution and twenty-four (24) continuous contributions before the application
  • Borrower’s age should not exceed the age of sixty (60) at the time of the application and must be insurable.
  • If the borrower’s age exceeds sixty (60) at the time of the application, the maximum loan term will be five (5) years.
  • Should not have granted any previous Housing loans from SSS.
  • Should not have been granted final SSS benefits.
  • The Borrower and spouse’s payments of the other SSS loan(s) payments should be updated.




  • Original copy of the following:
    • Mortgagor’s Application for Housing Loan with 1” x 1” ID pictures of Principal Applicant and Spouse
    • Certificate of Loan Eligibility (CLE) – (P100 Service Fee)
    • Certification from POEA/DOLE/OWWA/ SSS Foreign Representative Office or Philippine Embassy/Consular Office
    • Deed of Sale or Contract to Sell with the statement of latest balance for purchase of lot or house and lot
    • Appraisal Report from Home Guaranty Corporation accredited appraisal companies
    • Certificate of Acceptance and Occupancy duly signed by the borrower if the house is 100% complete at the time of loan filing
    • Duly notarized Special Power of Attorney (if filing is through a representative)
  • Original and Photocopy of the following:
    • Latest Contract of Employment and latest Employer’s Certification duly authenticated by Phil. Consulate
    • Owner’s copy of the TCT/OCT/CCT
    • Certified true copy of TCT/OCT/CCT issued by the Register of Deeds
    • Latest Property Tax Declaration and Realty Tax Receipt
  • Other documents:
    • Lot plan with vicinity map duly signed and sealed by Registered Surveyor or Geodetic Engineer (Blue Print)
    • Building plans/specifications/picture of the house (Blue Print)
    • A set of twelve (12) postdated checks covering twelve (12) monthly installments and shall be repeated every twelve (12) months after that until the loan is fully paid
    • Tax Mapping/Subdivision Plan
    • Affidavit of Undertaking to continue paying monthly SSS premium contributions for the duration of housing loan



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