The Overseas Filipino Workers (OFWs) are considered to be the modern-day heroes of the Philippines, having contributed 9% towards the country’s Gross Domestic Product (GDP). While this may be the case, there are still a lot of financial issues that plague the country’s OFWs today such as the lack of savings, debts, and other financial struggles. Because of this, the Overseas Filipino Bank was created to help Filipinos become financially independent even when their contracts as overseas workers end.
Bank services
Overseas Filipino Bank (OFBank) is a digital-only and branchless government bank that caters to the needs of Philippine migrant workers worldwide.
OFBank was formerly known as Philippine Postal Savings Bank (PPSB) that was established in 1906 to provide banking services to rural areas in the Philippines. However, the bank stopped its operations owing to the tight competition it had with private banks. In 2016, Philippine Postal Savings Bank (PPSB) was acquired by the Landbank of the Philippines (LANDBANK) and in September of 2017, President Rodrigo R. Duterte signed Executive Order No. 44, which turned PPSB into OFBank, a wholly-owned and fully controlled subsidiary of LANDBANK to serve the banking needs of migrant workers around the world. In 2018, OFBank was officially launched.
OFBank’s goal is to become a bank that OFWs can rely on and depend on for all of their banking needs and to continue to provide financial products that are innovative and reliable to help every OFW and their family.
The Head Office address of OFBank is at OFBank Center, Liwasang Bonifacio, Ermita, Manila 1000. Customers can email them at [email protected] or call them at (02) 8-405-7000 or 1-800-10-405-7000 (PLDT Domestic Toll-Free) for all of their inquiries and concerns.
Currently, OFBank offers two major products for OFWs that are currently available such as the OFW Reintegration Program, Multipurpose Loan, and the Bahay para sa Bagong Bayani (3B).
Understanding the plight of many OFWs when they come home after their employment contracts overseas expires and they find themselves financially challenged due to lack of income, the OFW Reintegration Program helps OFWs have an alternative other than their salaries from working abroad and decide to finally come home and be closer to their loved ones.
This type of financing is meant to help OFWs come up with a working capital requirement or to purchase fixed assets for their business.
Loan amount: Php 100,000 up to Php2 million for a single proprietorship and Php 5 million for a group of OFWs (Partnership, Corporation, or Cooperative).
Interest Rate: 7.5% per annum fixed for the duration of the loan
Loan Term:
Project Sharing:
OFWs who are certified by OWWA on the membership and capacity-building programs attended.
The eligible projects to be able to be approved of the OFW Reintegration Program include viable projects belonging but not limited to Franchising, Agri and Non-Agri Production, Marketing, Construction, Rental, Service, Trading, Transportation, and Contract tie-up with top 1,000 corporations.
Many OFWs work abroad to provide a better life for their families. Included in that dream is to be able to acquire a permanent home for their families. Undeniably, when Filipinos work abroad, they earn better salaries, and this means that they are better positioned to be approved of a home loan.
An OFW may need a 3B loan for the following purposes:
Loan Amount: Lowest of the paying capacity of the OFW or loan value of collateral with a loan value of 80% provided that:
Interest Rate:
Loan Term:
To be eligible for a loan, the OFW must meet the following criteria:
Upon loan application, the following documents must be prepared:
Photocopy of TCT/CCT
Even though OFBank is a fairly new bank, the effectiveness of its operations is backed by decades of LandBank’s expertise. Among the many reasons why OFWs should choose OFBank are the following:
The sacrifice that OFWs do for their loved ones is commendable – always being away from their families for months and years at a time, enduring homesickness, and living on their own. For some, they save up all of their money to the last peso to save all of that to send it back home.
While some OFWs live lavishly while they still have the opportunity to work abroad, most of the time, that goes away when they go back home. This is because there are not too many loan programs that help them create another stream of revenue if they settle back in the Philippines for good. This is why the presence of OFBank is very important to all OFWs who need a banking institution that prioritizes their need above all.
OFWs spend most months of the year working overseas, not allowing them to settle any banking matters when they come home for a vacation. With OFBank being a completely digital bank, it allows them to access their account and make banking transactions even when they are far away from home.
Just like the major banks in the Philippines, OFBank offers loan rates and terms that are as advantageous as other banks offer, if not more. OFBank is a fully controlled subsidiary of the Land Bank of the Philippines, which makes the OFW loan products of OFBank the same as that of Land Bank. And because the loan products are specifically catered to OFWs, the terms of the loan are designed to help Filipinos become financially independent with easier payment terms.
The current product offers of OFBank are linked to that of LandBank. When OFWs apply for a loan in OFBank, they are redirected to LandBank’s loan page.
To apply for a loan, simply follow these steps:
Head over to loans and click on the specific loan product that you wish to apply for. Click on Proceed when a disclaimer pops up. You will be taken to LandBank’s loan page.
Provide all the required information including the borrower’s information with a 1×1 photo, Co-borrower’s information, collateral, monthly income, and monthly expenses. Fill in all the details as accurately and completely as possible.
You will then be asked to provide the details of any debts that you currently have including the monthly installments that you are paying. Also required to be provided are any real estate ownership, and loans and credit references.
The last step lists out all the requirements that the borrower has to prepare in submitting the loan application. Once the data privacy and consent form is agreed upon, the loan application is considered as submitted. The personnel from OFBank will get in touch to provide instructions on the next steps to follow.
OFBank aims to serve the banking and financial requirements of the Overseas Filipinos (OF), Overseas Filipino Workers (OFWs), and their beneficiaries. Through the presence of OFBank, OFWs and their families will be able to completely rely on a banking institution that is made for them and will be able to cater to all of their needs.
OFWs used to feel so out of touch when the time came for them to come home, pushing themselves to work beyond normal hours and limit what they can do with their hard-earned money just to be able to save more so that they are somehow comfortable when the time came for them to come home. But with the presence of a dedicated bank for OFWs, they can be rest assured that their needs will come first and that they will have the necessary financial support should they plan to execute their financial goals.
״The secret of happiness, is not found in seeking more, but in developing the capacity to enjoy less״ - Socrates
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״The secret of happiness, is not found in seeking more, but in developing the capacity to enjoy less״ - Socrates
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״The secret of happiness, is not found in seeking more, but in developing the capacity to enjoy less״ - Socrates
