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Can an OFW Get an Auto Loan?
Now that your family has worked very hard for you to be able to study in a good college in Manila, graduate and transfer overseas to work it might be time to start repaying the favor and help provide for your family. This is a situation that many OFW’s find themselves in when living and working overseas, earning currency that is stronger than the Philippine Peso.
The answer to the question above is YES. Filipino OFW’s can avail for an auto loan through a bank or lender in the Philippines even when they are living and working abroad. The requirements from most providers are very similar for a OFW Loan so the details provided below should only be taken as a guide. For specific requirements, you will need to check with the bank that you will actually apply with when completing their application form.
Who Will Get the Funds?
As an OFW, you may only return to the Philippines once every one-two years so being physically present at your local BDO account to complete the application and receive the funds will not always be possible. You can nominate a beneficiary of your auto loan, which means that while you will be responsible for the application and the repayments for the car, your Dad, Mom, Wife, Husband, Sibling, etc, can be the person to receive and spend the funds from the loan. Of course, if you are in the Philippines at the time of application than you could be the one to receive the money.
Note, if a beneficiary will receive the loan on your behalf, this person must be living or working within an area serviced by your bank of choice.
What are the Requirements?
If you have been working overseas there are some general rules that will change slightly depending on what bank you get the loan from. Here are the general rules:
- You must have been employed for 2 years with the same company (abroad).
- You can be either a Filipino Citizen, Filipino Dual Citizen, ‘Former Filipinos’ (no longer citizens), A Filipino who is married to a foreigner.
- A certificate of employment from your current employer.
- Approximately three of your most recent pay slips.
- Copy of valid and current Philippine Government Issued I.D if you still have them. E.g. Passport.
- Government issued I.D from your current country of residence.
How Much will I be Able to Borrow?
This will depend on a number of different factors. Just because you are an OFW, it does not guarantee that you will be approved for a BIG loan, or approved for any loan at all. The same lending criteria will still apply. Even though you are living and working overseas the lender will still complete a background and credit check before during the application process. The lender will also consider any current debts you have and weigh them against your salary and what loan amount you will be able to afford to repay. Rest assured that the bank hopes to lend you money because lending money is a big part of their business and income from the repayments you will make is largely advantageous to the bank. Therefore, if you are able to get an auto loan and you meet their requirements, the bank will likely provide you with one.
Our website ( www.OFWLOAN.com.ph ) can be a useful tool for OFW’s. We accept auto loan applications from Filipinos working overseas and all the processing and submission of documents can be done online. Apply through our website and receive an instant response to your application.