Loans for EXPATs in Philippines

There have been a lot of questions regarding Expats loaning in the Philippines. The answer depends on every institution that provides these kinds of services. Although the most common answer would be, “You have to be married to a Filipino Spouse” which is not always the case. Let’s check some of the options:

Kinds of Loans:

Non-Collateral Loans (Personal, etc):

For Banks and Lending companies, there’s less chance for a loan approval. Although many of international banks here in the Philippines give some options, especially if you have a history of banking with them, the longer time you have stayed with the bank (and if you are a good payer (for previous borrowings)) the more likely you will get a loan from them. You might also be able to find private lenders at high rates (6% or higher add-on interest rates per month) if it is an emergency, it would be an option but definitely not advisable.

Car Loans:

If you have a work contract that extends for the term of the loan, most major banks will fund the loan. If you have a permanent monthly gov’t disbursement such as social security or military pension, this can also be applied as long as you can show proof that these disbursements have a history of being sent to your account here in the Philippines. As for having a spouse, you will most likely only need a co-borrower that has employment as a regular employee. If your spouse doesn’t work, you’ll need to find a close Filipino friend that will sign as co-borrower.

Home/Condo Loans:

Foreigners can’t own land in the Philippines, so you can only purchase a condo. There are only a handful of banks willing to lend to foreigners, and chances of acquiring a loan are somewhat limited. The bank will really have to see a long history here, and proof that you’ll be spending a long period of time in the country. Most likely you won’t be able to qualify for some of the longer loan terms until the bank gets to know you better. However, if you pay a higher down payment than the required minimum, this can help improve the chances that you can qualify for a longer term. Business Loans:

The only cases where business loans are approved are in cases where you own property that can be collateralized, such as a car or a condo.

Requirements

Basic Requirements for Pre-Qualification

1. Foreigner residing in the Philippines for more than two (2) years
2. Must be of legal age and capable of paying upon maturity
3. Minimum Gross Annual income (dependent on the Bank requirement)
4. Must have at least one (1) landline at either residence or office
5. Residence or office must be within Bank serviceable area

Additional application requirement for Salaried Employees

6. Must be at least one (1) tenure with the company

Additional application requirement for Self-Employed

7. Must be a sole proprietor or majority part-owner of a company operating for at least two (2) years.

Additional application requirement for Professionals

8. Must be in private practice for at least one (1) year

For Resident Foreigners

9. Copy of Employment Contract or Certificate of Employment
10. Letter from the Embassy (if Embassy Official)
11. Submit photocopy of any of the following:

• Valid Passport with Resident Visa; OR
• Work Permit and valid Visa; OR
• Special Investor’s Resident Visa and Visas Philippine Economic Authority or Visa with Eo226; OR
• ACR or ICR or ACR1