In order to facilitate the access of Overseas Filipino Workers (OFWs) to bank credit, the Monetary Board has approved the enhanced policy expressly allowing banks to grant Peso consumer loans for OFWs without prior Bangko Sentral ng Pilipinas (BSP) approval. This is in line with the BSP’s financial inclusion and empowerment agenda.
The revised guidelines likewise liberalize the rules limiting the grant of Peso consumer loans to certain types of visa holders. In particular, Peso consumer loans, except residential real estate and housing loans, may also be extended to all eligible foreign nationals with valid visa issued by relevant Philippine authorities. Likewise, embassy officials and employees based in the Philippines are allowed to avail any type of Peso consumer loans.
The enhancements are premised on the banks’ continued adherence to sound credit underwriting practices and effective control measures in managing risks involved in granting Peso consumer loans to OFWs and eligible foreign nationals. The new guidelines promote greater access to bank financing for these borrowers, while expanding and broadening market segment for banks.