Application for OFW Loan: Basic Guide

You’ve been working so hard to provide for your family, earn a fair amount of money and save for their future. You may have considered buying a property where you can build your dream home and finally settle down in the Philippines. But what if you don’t have enough savings for it? 

Loans are risk-free and extremely advantageous if you want funds for an emergency or an investment. You require a loan for a variety of reasons. For example, if you require financial support, an OFW loan might help you quickly make your investment.

There are several loans that you can apply to as an OFW.



Overseas Filipino Workers (OFWs) can now benefit from the government’s labor program called “Overseas Filipino Worker-Exit Program,” wherein an OFW may borrow a maximum of P500,000.00 pesos for their housing needs upon returning to the Philippines for good. This applies to all overseas workers regardless of age, sex, nationality, and even employment status abroad.


Personal loans are granted depending on your credit score and earnings. Any collateral does not secure this loan. A personal loan is significantly easier to obtain than a home loan or a vehicle loan. This type of financing is excellent for small-scale home renovations and house acquisitions. In addition, this loan can be used to pay bills, school fees, and other expenses.


Auto loans are loans used to purchase a vehicle. It functions similarly to a personal loan wherein you must repay the entire amount, including interest.


Business loans are money borrowed to cover present business expenditures or launch new businesses.


  • The OFW applicant must be between 21 to 59 years old.his age group is seen as mature and responsible enough to manage OFW loans. If you are 60 or older, you will need a specific power of attorney to settle or apply for the loan.
  • The OFW must have at least three (3) months remaining contract with his/her employer abroad before the expiration date or have been separated from employment under their contract.
  • OFWs who have returned to their home country are also eligible (Balikbayan). If you’ve previously worked abroad and want to return, you can ask your lender for a loan.
  • First-time OFWs with no starting money or finances are also eligible to apply.
  • When you prove that you have a stable source of income, your chances of acceptance increase.
  • You must also comprehend the consequences of borrowing money. 
  • Complete the application form, including a recent photo and signature.

*Requirements may vary depending on the lender*


Borrowing money is not complicated. However, being approved is not easy; you have to qualify for all the requirements needed and be a responsible borrower. Your reason for applying for a loan shouldn’t just be because you want to buy something luxury you don’t need; make sure your reason is valid and for a good cause. Also, make sure you pay your previous debts or loans first before borrowing another one; this would help you not get tangled up.

Author’s Bio:

Frank is an energetic salesman. On his free days, he spends his time writing and reading about financial plans and educational loans to help the parents and the next generation gain more insight about multiple educational opportunities.