MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) announced it has enhanced the guidelines on the granting of consumer loans for overseas Filipino workers (OFW) in order to facilitate their access to bank credit.
The Monetary Board said it has issued Resolution 1729 approving the enhanced policy expressly allowing banks to grant consumer loans for OFWs without prior approval from the BSP.
The central bank said the move is in line with its 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,” the BSP said in a statement.
“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,” it added.
Embassy officials and employees based in the Philippines are also allowed to avail of any type of peso consumer loans, the central bank said.
“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 BSP further stated.
“The new guidelines promote greater access to bank financing for these borrowers while expanding and broadening market segment for banks,” it added.
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