BDO Business Loan for OFW

BDO Kabayan Personal Loan Secured

This type of loan is made against the individual or joint account of the borrower with BDO as a form of security. The deposits allowed as security are Savings Accounts (Peso or Dollar) and Time Deposits (Peso or Dollar). The term of the loan applied must be the same as the period that the time deposit has been maintained. For both securities, the minimum deposit must be Php15,000 or its dollar equivalent. 

The maximum loan amount that can be applied is 90% of the deposit balance for a Peso account and a maximum of 80% of the deposit balance for a Dollar account. 

BDO Kabayan Personal Loan Unsecured

OFWs with a fixed income are welcome to apply for this loan program without the need for collateral. And since it is a multipurpose loan, OFWs can use the loan proceeds for business or for other purposes that meet their needs.  

OFWs can apply for a minimum loan amount of Php10,000. However, for seaman or domestic helpers, the minimum amount they can loan is equivalent to their gross monthly income multiplied by 1.5 months if they have been employed for less than 3 years and multiplied by 2 months if they have been employed for at least 3 years. 

Loan Term

The Secured and Unsecured Kabayan Personal Loans can be paid for fixed monthly payments between 6 months to 36 months. However, OFWs who have a fixed contract will be approved of a loan term that is co-terminus with their employment contract while those with open-ended contracts can opt for a 24-month repayment period subject to exception approval. 

Eligibility and Requirements

For OFWs to qualify for the Kabayan Loan Programs, they must meet the following criteria:

• Must be 25 to 65 years old, but not more than 65 when the loan matures. 
• A Filipino citizen, based abroad, former Filipino citizen with or without dual citizenship, married to foreigners, or an OFW beneficiary. 
• Worked continuously for 2 years under the same employer, 3 years for OFWs or Domestic Helpers. 
• Has a good credit standing. 
• With at least one residence/work/business landline number.
• Earns at least Php20,000 or its dollar equivalent. 

Having passed the eligibility criteria, the following documents need to be prepared upon loan application:

• Proof of Income
• Photocopy of 2 valid IDs
• Signed Automatic Debit Arrangement (ADA) Form
• If the loan proceeds will be released to the beneficiary, a signed Authorization Letter. 
• Information Form of the Beneficiary

Other Banks or Brands That Offer OFW Business Loans

Land Bank OFW Reintegration Program

The OFW Reintegration Program of the Land Bank of the Philippines aims to provide an alternative to the overseas employment of OFWs in the form of credit assistance so that they can put up their own businesses. This is a loan program that is in coordination with OWWA. 

Eligible OFWs include those whose membership has been OWWA certified and has attended the Capacity Building Program. The OFW can apply for a business loan only if the purpose of the loan is to build working capital requirements or acquisition of fixed assets for the business that he or she is planning to build. 

The eligible projects include franchising, agri or non-agri production, marketing, construction, transportation, rental, trading, or service. 

Loan Features

Loan Amount: Php100,000 up to Php2 Million if Single Proprietorship and Php5 Million for Partnerships, Corporations, or Cooperatives. 

Interest Rate: 7.5% fixed rate for the duration of the short-term loan or term loan

Loan Term:

• Short-term Loan – maximum of 1 year
• Term Loan – not more than 5 years and is based on cash flow, including the grace period of two years on the principal. 

OWWA Loan

When OFWs or Seamen apply for a loan with OWWA, they can use it for starting their own business or as an added capital to an already existing business. OFWs and Seamen can either apply for the OFW Reintegration Program (already discussed under Land Bank) and the Helping the Economy Recover thru OFW Enterprise Start-Ups (HEROES) Loan Program. 

The HEROES Loan Program is technically not a program of OWWA but for OFWs to be able to avail of the loan, they must be a member of OWWA. It is an initiative of the Pondo sa Pagbabago at Pag-asenso (P3) fund under the Department of Trade and Industry with a goal of helping micro-businesses and SMEs owned by OFWs. 

Repatriated OFWs can apply for a minimum loan amount of Php10,000 and a maximum loan amount of Php100,000 that is interest-free and does not require collateral. However, the borrower will have to pay a 6% service fee if the repayment term chosen is 24 months, and an 8% service fee if the repayment term is for 36 months. For both loan terms,  a 12-month grace period is already included. 

Balikbayad

Balikbayad is a brand under First Digital Finance Corporation but has loan products specifically catered to OFWs – both land-based and seaman (OFW Loan and Seaman Loan). 

The OFW Loan and Seaman Loan are both considered personal loans but can be used for different purposes that the borrower intends, including a business purpose. 

Loan Amount: Maximum of twice the monthly salary of the OFW

Loan Term: 

• Land-based – 6 to 18 months
• Seaman – 3 to 8 months

Conclusion

OFWs are considered modern-day heroes because of the significant contribution they bring to the Philippine economy. It is only fitting that they also be offered an opportunity to build their own business to prepare for the time that they come home for good. Although BDO does not specifically have a business loan product for OFWs, the capital needed for their business needs can be addressed through the multi-purpose Kabayan Loan Programs.