What is OFW Loan?
This is a personal financial assistance, meant exclusively to cater to the needs of the Overseas Filipino Workers. They may currently be under a job contract or are on a journey to the country of working. It is a kind of personal, business, car, house or bank loan, having special terms and conditions to match the specific needs of OFWs and their families.
Migrant Filipinos workers who are in possession of the document, in proof of employment as a worker in the Philippines are eligible for the OFW loan, also known as Bagong Bayani.
The following are the three important financial tips to aid OFW in the family:
- Access the Need Based on Family Dynamics
Since 96.6 percent of OFW households relies chiefly on remittances, your family members must be depending on the money received from the OFW member for paying their basic needs. Therefore, discuss the matter elaborately with your family members, how the money will be utilized.
You know the earning of your OFW member. So, agree on the amount to be received, and that to be saved out of it. Instead of fully depending upon the remittances, members able to earn must do so.
Budgeting is planning on doing. Prepare a realistic budget, incorporating the basic needs, allowances, and savings and adhere to it religiously. Your budget should include monthly expenditure, savings, and investment so that your money grows. You should not have a feeling of complacency; just because you are getting easy money because of hard work of your WFO member.
In fact, budgeting liberates and does not limit. Saving for the future enhances the quality of present life. You should go in for a forced saving by asking your bank to debit 20 percent of your income and investing the same in mutual funds.
- Be Financially Literate
Be urged upon to be financially savvy. This will aid you in knowing the value of every peso that comes to your money. If you are financially educated, you can make the best utilization of your OFW loan and books are the best aid for getting educated. But go through books that are written by local authors who write in Filipino context. You can have a book written by Bo Sanchez on, “How to in the Stock Market?” You can also go through online blogs for increasing your knowledge on finance of OFW members.
Any loan carries the additional financial burden of interest that adds to the principal amount of loan. Lower the interest, lower will be your financial burden for repayment. You can get OFW loan with lower rate of interest from personal loan leaders in the Philippines few of which are as below:
- Banco de Oro
- Bank of the Philippine Islands
- Land Bank of the Philippines
- Government Micro-financing Programs
These financial tips are highly useful for overseas Filipino works who wish to help and assist their families living away from them. Stay tuned with us for more information regarding OFW loans.