## OFW Loan Pricing Comparison and Calculator

For landbased Overseas Filipino Workers (OFW), have a look at the loan comparison chart we put together from information we gathered from different private lending companies. This table serves as a calculator for various loan amounts. It shows how much your monthly payment would be for 6 months and no grace period given the loan amount. We use the net pay out amount, after any up-front fees deducted to make the numbers comparable. Wherever possible, we use mystery shopping and actual amortization tables shared by customers:

 Asialink / Finaswide Balikbayad PJH Zazu 123 Lending 30,000 7,822.50 6,779.17 8,454.44 7,317.15 6,952.80 50,000 13,037.50 11,345.83 14,090.91 12,195.25 11,588.00 70,000 18,252.50 15,912.50 19,727.27 17,073.35 16,223.20 100,000 26,075.00 22,762.50 28,181.82 24,390.50 23,176.00 120,000 31,290.00 27,329.17 33,817.76 29,268.60 27,811.20 150,000 39,112.50 34,179.17 42,272.20 36,585.75 34,764.00 180,000 46,935.00 41,029.17 50,726.64 43,902.90 41,716.80 200,000 52,150.00 45,595.83 56,362.93 48,781.00 46,352.00

If you are a returning OFW and need the loan for business purposes, you could also consider an OWWA Loan.

## Seaman Loan Pricing Comparison and Calculator

For Seaman, have a look at the loan comparison chart we put together from information we gathered from different private lending companies. This table serves as a calculator that shows how much your monthly payment would be for 6 months and no grace period given the loan amount. We use the net pay out amount, after any up-front fees deducted to make the numbers comparable. Wherever possible, we use mystery shopping and actual amortization tables shared by customers:

 Asialink / Finaswide Balikbayad Global Dominion PJH 30,000 6,584.02 6,466.84 6,716.40 6,608.27 50,000 10,936.95 10,825.29 11,147.35 11,013.79 70,000 15,289.80 15,183.73 15,578.31 15,419.31 100,000 21,819.26 21,721.40 22,224.73 22,027.58 120,000 26,172.32 26,079.85 27,109.82 26,433.10 150,000 32,701.82 32,617.52 33,887.27 33,041.37 180,000 39,231.33 39,155.19 40,664.73 39,649.65 200,000 43,584.26 43,513.64 45,183.03 44,055.17

If you are a returning OFW and need the loan for business purposes, you could also consider an OWWA Loan.

## OFW Loans 101: How and what you need to get a loan

Are you planning on getting an OFW or Seaman loan from a lending company for the first time? If you want to know the process and requirements you should be bringing with you, then you certainly have come to the right place. After numerous visits to different lending companies and interviews with OFWs and Seaman that went through the whole process of borrowing money, we are pleased to share the information that we have gathered with you.

The process of applying in every lending company involves 3 major steps.

1. Inquiry and Application

For this step, you (the borrower) will call or visit the branch of the lending company. You will ask the lending company regarding the details on getting a loan such as the documents you need to submit, the interest and fees that they charge, and the estimated monthly payment given the loan term. The documents that all lending companies ask for are found below. Do take note that there are lending companies that ask for more documents so check our document comparison page to see which requirements each lending company asks for.

-Valid ID                                                            -Airplane Ticket

-Passport                                                          -Overseas Employment Certificate

-Working Visa                                                  -Proof of Billing

-Employment Contract                                  -Co-maker*

*documents of co-maker vary depending on the lending company

If you have all these requirements ready with you, you may now visit the lending company to apply. You will be asked to submit these documents to the loan officer. After submitting, you have finished step 1!

1. Credit Investigation

The second step won’t involve you for the most part, unless there are some additional findings from the credit investigation. During this step, lending companies will verify information that you have submitted including your employment status, your departure date, the validity of your documents, your home address and many more. If you are hiding anything from these companies, most likely they will figure this out and have a negative effect on your application. Because of this, it is best to inform them from the start regarding any potential problems.

The credit investigation process usually takes a day to be completed, so just wait for a call from the company regarding the decision on your application.

1. Loan Release

The third and last step of the process is the disbursal step. This is the time when you will get your loan and sign promissory notes with the company. Common practice of lending companies is to only disburse the loan 5-7 days before your departure. (If you have urgent needs and your departure date is not anytime soon, we suggest that you find other ways and not go to lending companies to save time.)

On disbursement day, you will be asked to sign post-dated checks for each of your payments. In the event that you do not have a checking account, the lending company will endorse you to a partner bank to open one. (View our features comparison page to see how much each company will charge you for maintaining the minimum balance). You will also be signing your promissory note on this day as well as the disclosure statement which shows you all the interests and fees. Take note that some companies have hidden charges which they deduct to your loan amount that they did not tell you about, and these charges will be seen on the disclosure statement.

Once you have signed all the contracts and post-dated checks, the company will give you the loan either in cash or check. For the repayment of your loan, you have to fund the checking account that you have opened on or before your due date as they will deposit the check on that day. One tip is that if you have problems with your payment, it is best to contact the lending company ahead of time to avoid a lot of penalties.

If you fear that you won’t completely understand the terminologies used by lending companies, read our loan terminologies page to be more familiar with the terms and to avoid getting exploited.

## Understanding Loan Terminologies

Hello fellow OFWs and Seamen! If you have plans to apply for a loan, you can be better prepared by knowing what these loan terminologies mean. There are also tips in the end of every terminology on what questions you should ask the lending company regarding these.

Agents – Agents are individuals who are not employees of lending companies but may be tied up with one. Agents approach OFWs and Seaman who needs a loan, with promises of a sure approval. This is not true. Moreover, agents ask for commission from the loan for their service, which means that you have to pay them if you get approved. Because of this, it is best to avoid agents and look for lending companies that do not accept agents, as those with agents do charge higher fees and interests.

Checking Account Maintaining Balance – Banks require the customer to maintain a minimum balance in order to open a checking account. Ask the loan officer how much the maintaining balance is and if it will be deducted to your loan amount, as there are lending companies that shoulder this amount for you.

Co-maker – A co-maker or co-borrower is a person that will take the loan with you. The co-maker will sign all the contracts, submit all the documents required of him/her and will be liable for the loan. The co-maker is also usually the one who deposits the money into the account, as the co-maker is the recipient of the remittance or allotment. In the situation that you are unable to repay your loan, it is not only you but also your co-maker who will be charged.

Effective Interest Rate – The effective interest rate is the real rate of borrowing money and is different from the interest rate. The interest rate that the loan officer tells you is lower compared to its effective interest rate. In comparing effective interest rate, you should consider the actual loan amount you get, the fees charged and your monthly amortization. Not getting the full amount of your loan means that the effective interest rate is much higher and they are clearly taking advantage of you.

Grace Period – Grace period is the period in time between your disbursement date and first payment date. A grace period is usually given to allow the OFW or Seaman to adjust to their new life abroad, as they start to figure out their monthly expenses and how long it takes for them to remit money.

Hidden Charges –Hidden charges are charges such as processing fee and insurance that companies do not disclose to you until the last step when you are about to sign the contract. Because of this, on your very first visit, always ask what are the charges of your loan and how much of the loan amount you will actually receive.

Interest Rate – The interest rate is the rate they charge on the principal for borrowing money. Different lending companies have different interest rates and companies usually charge this rate per month.

Loan Amount – Loan amount is simply the amount that you want to borrow. What you should ask the loan officer is if you will be able to get the full amount or will there be deductions.

Loan Term – The term of the loan refers to the number of months from the disbursement date to the maturity date, basically the number of months until you full pay your loan. Some lending companies confuse this with the number of payments, so be sure to confirm this if not explained by the loan officer.

Monthly Amortization – Monthly amortization is the amount that you are required to pay every month until the term is finish. For companies that use Post Dated Checks as mode of payment, monthly amortization is the amount written on the checks.

Pre-termination – Pre-termination is putting an end to your contract with the company even before its maturity date. To pre-terminate a loan with a company, you pay the whole amount of your loan and an early termination fee. You should ask the lending company if they allow pre-termination and what are their rules on this as it is not standard for all companies.

## Requirements Comparison Chart of Lending Companies

Hi kababayan! Do you want to know the requirements in applying for an OFW or Seaman loan? Check below for the requirements of each lending company.

Legend:          ✓ – required          x – not required

Borrower’s Requirements:

 Asialink Balikbayad MLC PJH Zazu 123 Lending 2×2 picture 3 pcs x 2 pcs 2 pcs 2 pcs 3 pcs Valid IDs* 2 pcs 1 pc 2 pcs 2 pcs 2 pcs 2 pcs Valid Passport ✓ ✓ ✓ ✓ ✓ ✓ Proof of billing** ✓ ✓ ✓ ✓ ✓ ✓ Barangay Clearance** ✓ x ✓ ✓ ✓ ✓ Official Employment Contract*** ✓ ✓ ✓ ✓ ✓ ✓ Valid visa to the country of deployment ✓ ✓ ✓ ✓ ✓ ✓ Valid Plane Ticket ✓ ✓ ✓ ✓ ✓ ✓ Birth/ Marriage Certificate of Borrower ✓ x ✓ ✓ ✓ ✓ Overseas Employment Certificate (OEC) ✓ ✓ ✓ ✓ ✓ ✓

*Government issued; signed by borrower

**Most recent and contains borrower’s name and residence address

***Must bear the signature of both the employer and employee; must show the salary, allowances, contract duration and country of destination

For Seaman, in addition to the requirements above, lending companies also require seaman’s book, seaman’s registration certificate and an allotment certificate.

Co-maker’s Requirements:

 Asialink Balikbayad MLC PJH Zazu 123 Lending 2×2 picture 3 pcs x 2 pcs 2 pcs 2 pcs 3 pcs Valid IDs* 2 pcs 1 pc 2 pcs 2 pcs 2 pcs 2 pcs Proof of billing** ✓ ✓ ✓ ✓ ✓ ✓ Barangay Clearance** ✓ x x ✓ ✓ ✓ Sketch of Residence ✓ ✓ ✓ ✓ ✓ ✓ Proof of income ✓ x x x ✓ ✓ Birth/ Marriage Certificate ✓ ✓ ✓ ✓ ✓ ✓ Cedula x x x ✓ ✓ ✓ Owning Residence ✓ x ✓ ✓ ✓ ✓

*Government issued; signed by co-maker

**Most recent and contains borrower’s name and residence address

Note: If there is any wrong information, please send us a message and we’ll try to correct it immediately

## Features Comparison Chart of Lending Companies

Do you have questions such as what is the maximum amount you can loan, or how long the loan terms offered by lending companies are? You have definitely come to the right place to find answers to these simple questions and other features that lending companies offer.

 Features Asialink Balikbayad PJH Zazu 123 Lending Minimum Salary Php 17,000 Php 20,000 Php 20,000 Php 20,000 Php 20,000 Minimum Loan Amount Php 15,000 Php 20,000 Php 25,000 Php 20,000 Php 20,000 Maximum Loan Amount 2x of salary 2x of salary 2x of salary 2x of salary 2x of salary Term (months) 6 to 12 6 to 18 3 to 12 6 to 18 6 to 12 Processing Time (days) 1 1 1 1 1 Full Amount on Net Proceeds No Yes No No Yes Maintaining Balance for Checking Account Deducted from loan Paid by Balikbayad Deducted from loan Deducted from loan Deducted from loan Co-makers 2 if above P150,000 1 2 if above P100,000 2 if above P100,000 2 if above P100,000