Dreamy as the OFW life might seem financially, OFWs still face financial difficulties. This is where loans come into the picture. With a few documents and requirements, loans for domestic workers are within reach for all who need it.
We also wrote about How to Apply for an OFW Loan Without CCSL, and The Best Options for Quick Loans in Hong Kong for Domestic Helpers.
Are domestic helpers eligible for loans in Hong Kong?
There are many banks that offer loans for domestic workers, and OFWs in general. The interest rates vary from one financial institution to another, but nevertheless, domestic helpers can avail of these loans, provided that they submit the requirements.
What are the common requirements for domestic helper loans?
While banks and other financial institutions have varied requirements for domestic helper applicants, they share a few of these. Some requirements for domestic helper loans include passport, visa, and employment contract.
5 things to consider before applying for a domestic helper loan
Loans for domestic helpers– or any loan for that matter– entails a lot of responsibilities. It is therefore sensible to evaluate a couple of things before finalizing your decision to apply for a loan.
1. Why do you even need a loan for?
When domestic helpers borrow money, there’s always a need that cash can solve. Make sure that you have evaluated if it is urgent and if it will really help you in the long run. Ask yourself and justify if the reason is really worth the hassle and sacrifice from your salary in the next few months or years.
2. Are you comfortable with sharing your personal information?
While documents are a necessity and can prove the legitimacy of the information you claim, you will still undergo other verification processes. These processes include interviews and background checks. For interviews, it’s no sweat since you will only be asked basic information about yourself.
As for background check, they’ll check your record for any previous loans and transactions you’ve had. They’ll conduct a lifestyle check as well to make sure it matches the details you’ve inputted in your forms. These might sound nerve-wracking but the important thing here is to be able to prove them all in all the processes you’ll undergo.
Prepare supporting documents or photos, if you have. Prepare bank statements as well from previous transactions and even from other banks where you have an account. This will prove to the lenders and evaluators that you can really pay the amount you wish to borrow.
3. How much do you want to loan?
As domestic helper loans come in different forms and for different purposes, it will be best to select the one that best suits your needs. For example, if you want to apply for a loan to buy a house. Make sure to avail a banks’ housing loan.
This will ensure that the set-up for the payment and other arrangements are aligned with the needs of buying a house. There are also banks that offer loans for those who want to avail a car. To best gauge your needs against the offers available, it will be best to check out banks’ websites and official social media accounts.
4. What payment methods do you prefer?
Now that you know that it is justifiably important,supported with documents and decided on the amount, decide now on how to pay it. Think of your monthly income and expenses, compare it against the loan program that you are applying for.
Loans for domestic workers also come in different time spans for payments. You can pay for 12 months, 24 months and even 36 months, so be sure your budget can handle the payments without compromising your daily needs.
5. Do you have bad loan record?
As mentioned earlier, background checks are conducted to ensure that you had or at least can responsibly pay for your loans.
Any unpaid domestic helper loans from the past can lead to a rejection of your application, since this reflects you as a loan payor. Before applying for a loan, make sure you have already paid past debts and have the documents to prove it.
5 best loans for domestic helpers
Listed below are the best loans for domestic helpers, rated by many loaners and based on the arrangements they offer.
1. UA
UA FInance Overseas Workers Loan caters mainly to Filipino and Indonesian workers based in Hong Kong. They have flexible interest rates, personalized load amounts and customized repayment terms. With nine branches operating, you can surely inquire on-site and get necessary hand-on help.
2. Elephant Club
Making it to the list of best domestic helper loans is Elephant Club. They offer different types of loans, depending on the purpose. Loan options include touring loan, home improvement loan, card repayment loan, debt consolidation, student loan, property down payment, wedding loan and beauty loan.
3. First Credit
First Credit’s Overseas Workers Loan does not require a handling fee and referee. They also do not demand for the CCSL from the applicant, making it easier to avail of the loan program. On top of that, applicants can receive a free gift.
4. Topway
A lending platform tailored to help a domestic helper borrow money is Topway. Since this is an online platform, there’s no need to visit any office. Transactions can be done quickly and you can review which loan program is best for you.
5. DLO Credit
DLO credits is also an online loan platform for domestic helpers. Applicants can choose to fill out application forms online or physically though their service centers. After going through and signing the contract, you’ll have 1-2 days before it is processed to have your DLO card. Upon having the DLO card, you can already withdraw your loaned money through their cash withdrawal terminals.
3 tips to avoid debt problems
1. Stick to your savings routine
The best way to do this is to automate your transfer for each expenditure, especially the loan payment. This will ensure that you are paying the debt monthly and therefore avoid problems in the future. This also helps you prepare your budget better, since you can only work with what you have at hand.
2. Pay your monthly loan dues in FULL
Tempting as it might be to pay partially, know that this might not be the best set-up for you in the long run, especially if you want to get done with your loan sooner. Limit expenditures as much as possible to be able to fully pay it.
3. Keep your debt in check
In every payment made, it will be best to get an official receipt and track how much you’ve paid and how much more to go. This will also provide proof that the money you are paying really goes to pay the debt you have.
Final Tips
Loans for domestic workers might sound like an instant financial solution, but it can be a burden if you are not well-prepared and disciplined for it. Applicants must know their financial capacity and need very well in order to manage and pay it responsibly.
