You are here
Home > Business > Bank V/s. Private Lending Company For Personal Loan! What Should OFWs Prefer?

Bank V/s. Private Lending Company For Personal Loan! What Should OFWs Prefer?

Personal loans are offered to OFWs by various associations including the banks and the private companies. It becomes very difficult to decide where to apply for the loan. Yes, there are offers that are overwhelming and we tend to fall for it; however, let’s discuss both options one by one!


They offer personal loans at an attractive rate of interest. Banks also offer flexible payment terms. However, the processing of the OFW loan application takes longer time. The banks are offering attractive loans.

BPI’s OFW Personal Loan

  • This loan is a collateral free loan. Banks lend you money without any bond.
  • You can apply for two types of OFW personal loan. They are land based or seafarer personal loan.
  • The legibility criteria depend on your employment type, computation, and amount approved for the loan.


BDO Asenso Kabayan Loan

  • Bank offers a multipurpose loan. This loan does not require any collateral.
  • This loan is offered by the bank to empower OFWs in managing their savings to the Philippines. In order to apply, you must have the joint or individual account.
  • This account must have deposits that are maintained on a regular basis.
  • It is very convenient to get the loan as less paperwork is required.
  • You can take the loan between P 10,000 to P 1,000,000. The loan amount depends on existing balance in your account with the bank.
  • Loan repayment duration is very flexible. You can opt for 3,12,18,24 or 36 months long tenure.

Private Lending Companies

These financial establishments lend all types of loan like the personal loan to OFWs. They give you a quick loan. They are very straight forward with their terms and services.


  • These are credible lenders as banks.
  • You can get the loan between P 20,000 to P 1,000,000. It depends on your assessment.
  • They lend you the amount depending on your salary. They offer you the loan double than your monthly salary.
  • The rate of interest offered is 2-4% per month.
  • They don’t provide loan repayment flexibility as compared to banks.
  • Unlike banks, the maximum duration for loan repayment is only 12 months.
  • They provide you a quick loan irrespective of more paperwork.


Banks are the Best Option!

  • In the Philippines, there is the absence of unified ID system. It makes difficult for banks to check the person’s credit rating.
  • BSP conducted a survey in 2014. According to it, 86% of the Filipinos do not have savings accounts in the bank. They are not eligible to take the loan from the bank.
  • To apply for the bank loan, you must have a good credit record and a bank account.

Private lending companies for a personal loan are another option:

  • If you are not qualifying to get the bank loan
  • If you don’t have the stable flow of income
  • If you are confident that you can manage loan repayments

Each one has pros and cons. You have to decide which will work towards your advantage. It depends on your financial status.