Why OFWs Need to Apply for a Loan

Overseas Filipino Workers (OFWs) bring a lot of income to many Filipino families. In the first quarter of 2017 alone, it is estimated that 2.32 million Filipino families have their income from OFWs. There is the perception that OFWs have better lives abroad. It is not true. Working in foreign countries may be their only opportunity to reach greener pastures.

When they want to back home, they can use their earnings to help their families. Fortunately, banks are ready to accommodate them. In addition, there are loans catered specifically for OFWs. To get these benefits, you must be at least between 21 to 59. So, if you are an OFW returning back, consider applying for a loan. Here’s why.

Invest in real estate

It is a dream for OFWs to have a home that’s theirs. From the land to the home’s construction, most people use an OFW loan. However, these individuals want to take advantage of real estate as a money-making opportunity. It is also one of the first investments they make once they get back home.

Purchase a vehicle

Depending on the lifestyle, a vehicle is a great choice. There are times when commuting can be a problem, and a vehicle can save you money. Maintenance comes second if the loan can still cover the expenses. Salaries of OFWs may be higher than local wages, but they can afford what they want. Be sure that the vehicle you get will not hinder your financial situation.

Run a business

With the experience abroad, OFWs can take a loan and use them for business. It will benefit the family as they can have more income than relying on one person’s salary. For businesses, it is important to have a starting capital. The capital will determine how the business will be able to manage its finances.

For emergencies purposes

Loans can be a way to get emergency funds. Life is unpredictable, and you do not know where an accident could happen. It would be concerning that you went through an accident and have no money in your pocket. Even before applying for a loan, OFWs need to have some emergency funds just in case. It is better to be financially prepared than to have none.

Debt consolidation

OFWs can settle remaining debts through a loan. In the case of debt consolidation, banks understand that you have unfinished business to deal with. Payments can be flexible, with one for three to twelve months with monthly payments. Once the debt is eliminated, OFWs can live their remaining life in peace. Handling these debts can also improve your credit. As a result, OFWs may have the chance to receive better loan terms if they want to.

Conclusion

Getting a loan can be beneficial for OFWs, as long as they know what they are doing. It can further make their lives better and help their families. With their experience abroad, finances will be a bigger aid for them once in their later years. Remember: you can use what you have.  

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.

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