About Lender

Balikbayad stands out as a prominent digital finance corporation in the Philippines. It offers financial solutions tailored to the unique needs of Overseas Filipino Workers (OFWs) and seamen. The company's commitment to transparency and customer-centric practices is evident in its policy of disbursing the full approved loan amount without any deductions, a departure from common industry practices. Unlike other lending entities, Balikbayad integrates all fees and charges seamlessly into the monthly loan installment, eliminating any out-of-pocket expenses for borrowers.

Balikbayad's loan terms and conditions are designed to strike a balance between meeting the financial needs of borrowers and ensuring responsible lending practices.

Key Features

1. Transparent Fee Structure. Balikbayad distinguishes itself by including all fees and charges directly in the monthly loan installment, ensuring borrowers are aware of the total cost without any hidden processing fees.

2. 100% Disbursement. Unlike some lending companies, Balikbayad disburses the entire approved loan amount without deducting any fees upfront, providing borrowers with the full financial assistance they need.

3. Flexible Loan Terms. Balikbayad accommodates the varying needs of its clients with flexible loan terms. Land-based OFWs can choose a repayment period between 6 to 18 months, while seamen can opt for a term ranging from 3 to 8 months.

4. Swift Decision and Disbursement. Upon submission of all required documents, Balikbayad commits to providing a loan decision within 24 hours for in-person applications. Once approved, funds are disbursed the next day, facilitating quick access to financial assistance.

5. No Pre-termination Fees. Borrowers have the flexibility to pay off their loans earlier than the scheduled term without incurring pre-termination fees. In fact, there is even a discount on remaining installments for those who choose to settle their loans ahead of schedule.

6. Customer Privacy. While loan rejections are final, Balikbayad respects the privacy of its customers and does not disclose specific reasons for application denials, which are determined by the Credit department's comprehensive assessment.

Pros and Cons

Pros

Cons

Reliability

Balikbayad, a subsidiary of First Digital Finance Corporation (FDFC), has established itself as a reliable financial partner with a robust track record in the lending industry. Registered with the Securities and Exchange Commission under Registration No. CS201516347 and authorized to operate as a financing company with Certificate No. 1101, Balikbayad operates under various names, including FDFC, Loan Ranger, and Billease. The company's credentials underscore its commitment to compliance with regulatory standards, ensuring that borrowers can trust in a reputable and legally compliant financial institution.

How to Apply for a Balikbayad Loan?

Apply for a Loan

1. Fill Out the Online Inquiry Form. Begin the application process by accurately filling out the online inquiry form available on Balikbayad's website. Provide the required information and details about your financial needs. Balikbayad will contact you within 1-2 business days.

2. Visit the Nearest Balikbayad Branch. If you already have all the necessary documents, you can expedite the process by visiting the nearest Balikbayad branch directly. Ensure that you bring all the required original documents for the loan application.

3. New Accounts Officer Review. During your visit to a loan facility, a New Accounts Officer from Balikbayad will guide you through the product features and, if you agree, enter your loan application into their system. Unlike traditional paper applications, Balikbayad utilizes an electronic system for efficiency.

4. Credit Verification and Decision. Balikbayad's credit verification process typically takes one day for processing. You will be contacted with a decision within the next business day after submitting all required documents.

5. Approval and Bank Endorsement Letter. Upon approval, you can pick up a bank endorsement letter from Balikbayad. This letter is crucial for the next step in the process.

6. Open a Checking Account. Proceed to open a checking account with one of Balikbayad's partner banks. Balikbayad assists you in this process, making it part of their service with no associated costs.

7. Return to Balikbayad with Cheque Book. Return to Balikbayad with your newly acquired cheque book to complete the loan contract. Carefully read and sign the loan documents with your co-maker, if applicable.

8. Issue Post-Dated Cheques (PDCs). As a borrower, you will be required to issue post-dated cheques equivalent to the monthly loan installment schedule outlined in the Disclosure Statement.

9. Complete Loan Process. With your post-dated cheques issued, the loan process is nearly complete. Balikbayad will deposit your cheques on the scheduled due dates, ensuring a seamless repayment process.

10. Cash Cheque or Use Nearest Bank/ATM. Once the cheques are encashed, you can access the funds or use the nearest bank or ATM for cash withdrawal.

Conditions and Requirements

Conditions

• Transparent Fee Structure. Balikbayad ensures a clear and transparent fee structure, with all charges included in the monthly loan installment, eliminating hidden fees and costs for borrowers.

• Flexible Loan Terms. Borrowers can choose from flexible loan terms, ranging from a minimum of 6 months to a maximum of 18 months for land-based OFWs, and a minimum of 3 months to a maximum of 8 months for seamen, accommodating various employment contracts.

• 100% Disbursement. Unlike some lending institutions, Balikbayad disburses the entire approved loan amount without any deductions, providing borrowers with the full financial assistance they need.

• No Pre-termination Fees. Borrowers have the flexibility to pay off their loans earlier than the scheduled term without incurring pre-termination fees. In fact, there is even a discount on remaining installments for those who choose to settle their loans ahead of schedule.

• Efficient Application Process. Balikbayad commits to a swift decision-making process, providing borrowers with a loan decision within 24 hours of submitting all required documents during the first visit.

• Repeat Loan Convenience. Returning customers can easily apply for a second loan after fully repaying their active loan. The process is expedited for known customers, ensuring a faster and smoother experience.

Requirements

• Valid Identification. Borrowers need to provide a valid passport as a primary identification document.

• Employment Documentation. Land-based OFWs must submit an Overseas Employment Certificate (OEC), an employment contract in English, and an electric bill for their Philippine residence for the last three months. Seamen should provide a Seaman’s Book, Seafarer’s Registration Certificate (SRC), OEC, employment contract in English, and the same electric bill requirement.

• Age Requirement. Borrowers should be between the ages of 21 and 59 to be eligible for a Balikbayad loan.

• Checking Account. While not mandatory initially, Balikbayad encourages borrowers to have a checking account, and the company assists in opening and maintaining it. This account is part of the service and comes with no additional costs to the borrower.

• No Requirement for Multiple IDs or Co-maker Documents. Balikbayad simplifies the application process by not requiring multiple forms of identification, such as 2x2 pictures or co-maker documents.

• Primary IDs Accepted. Acceptable primary IDs include a Driver’s License, Unified Multi-Purpose ID, and Tax Identification Number (TIN) ID.

Ways to Receive the Money

Once the loan is disbursed, borrowers have the flexibility to either encash the cheque or withdraw cash from the nearest bank or ATM, providing convenient access to the approved funds.

Products

1. OFW Loans. Loan terms are inimum of 6 months to a maximum of 18 months. Designed for land-based Overseas Filipino Workers (OFWs), this loan product provides financial assistance with flexible repayment terms, allowing borrowers to choose a duration that aligns with their employment contract.

2. Seaman Loans. Loan terms are minimum of 3 months to a maximum of 8 months. Tailored for seamen, this loan product offers a shorter repayment period, reflecting the unique employment contracts and financial situations of individuals working in the maritime industry.

Other Loans

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Reasons for Getting Rejected for a Balikbayad Loan

1. Insufficient Documentation. Incomplete submission of required documents may lead to a loan rejection. Balikbayad relies on thorough documentation to assess a borrower's eligibility and financial capacity.

2. Failure to Meet Age Requirements. Balikbayad sets specific age limits for borrowers (21 to 59 years old). Failure to meet these age requirements may result in a loan rejection.

3. Unsatisfactory Credit History. A poor credit history or a history of defaulting on previous loans with other financial institutions may negatively impact the creditworthiness of an applicant, leading to rejection.

4. Exceeding Maximum Loan Amount Limit. If the requested loan amount exceeds the maximum limit set by Balikbayad (2 times the monthly salary), the application may be rejected to ensure responsible lending practices.

5. Inconsistency in Information. Discrepancies or inconsistencies in the information provided by the borrower during the application process may lead to rejection as they can raise concerns about the accuracy of the details.

6. Failure to Meet Employment Criteria. Balikbayad's loan products are designed for specific employment categories, such as land-based OFWs and seamen. If an applicant does not meet the criteria for the intended loan product, the application may be rejected.

7. Incomplete or Inaccurate Online Inquiry Form. For online inquiries, providing incomplete or inaccurate information on the inquiry form may result in rejection. It is crucial to ensure accuracy and completeness for a timely and informed response.

8. Outstanding Balikbayad Loan. If a borrower has an outstanding or active loan with Balikbayad, they may not be eligible for a new loan until the existing one is fully paid. This is to prevent borrowers from overextending their financial obligations.

9. Non-compliance with Balikbayad Policies. Failure to comply with Balikbayad's policies, terms, and conditions may lead to rejection. Borrowers should familiarize themselves with the company's guidelines to ensure a smooth application process.

How to Repay a Balikbayad Loan?

1. Opening a Checking Account. As a borrower, the first step in the repayment process is to open a checking account. If you don't have one, Balikbayad will guide and assist you in the process. This account is essential for managing your loan repayments.

2. Post-Dated Cheques Issuance. Once your checking account is set up, you will be required to issue post-dated cheques. These cheques should be equivalent to the monthly loan installment amounts, as outlined in the Disclosure Statement provided by Balikbayad.

3. Understanding the Disclosure Statement. Carefully review the Disclosure Statement to ensure you are aware of the exact repayment schedule. The statement outlines the due dates and corresponding amounts for each monthly installment, allowing you to plan your finances accordingly.

4. Issuing Cheques for Each Installment. Write out post-dated cheques for each installment, ensuring accuracy in the amount and date. This is a crucial step in maintaining a consistent and timely repayment schedule.

5. Submitting Cheques to Balikbayad. Submit the post-dated cheques to Balikbayad as per the agreed schedule. This can typically be done during the loan contract completion process or as instructed by Balikbayad's representatives.

6. Automatic Deposit on Due Dates. On the due date specified in the post-dated cheques, Balikbayad will automatically deposit the cheque into your checking account. This process ensures a seamless and efficient repayment mechanism.

7. Tracking Repayment Progress. Keep track of your repayment progress by regularly monitoring your checking account statements. This allows you to stay informed about the deductions and ensures that each installment is processed successfully.

8. Contacting Balikbayad for Concerns. In case of any concerns, changes in financial circumstances, or unexpected challenges, it is advisable to communicate with Balikbayad promptly. They may offer guidance or discuss potential solutions to ensure a manageable repayment journey.

Alternatives

JuanHand

Apply for a Loan

JuanHand offers online loans in the Philippines, providing individuals with access to up to ₱15,000 for a repayment period of up to 3 months. The lending platform stands out with competitive interest rates ranging from 9% to 12%. With a focus on simplicity and convenience, JuanHand aims to meet the short-term financial needs of borrowers through a streamlined application process and timely disbursement of funds.

Cashalo

Apply for a Loan

Cashalo is a prominent player in the online lending landscape in the Philippines, offering loan amounts ranging from ₱1,000 to ₱7,000 with repayment terms extending up to 90 days. Known for its accessibility, Cashalo provides borrowers with a starting interest rate of 3.95%. The platform's commitment to financial inclusion is evident in its user-friendly app, quick approval processes, and the flexibility it provides to individuals seeking smaller loan amounts for various purposes.

SB Finance

Apply for a Loan

SB Finance stands as a significant financial institution in the Philippines, providing substantial loan amounts ranging from ₱30,000 to ₱2 million. With flexible repayment periods spanning 2 to 48 months, borrowers can tailor their loan terms to fit their financial goals. SB Finance boasts competitive interest rates, starting at 1.2% and going up to 3.5%. This lending institution combines the strength of its parent company with a commitment to offering diverse loan products to meet the evolving needs of Filipino borrowers.

Online Loans Pilipinas

Apply for a Loan

Online Loans Pilipinas caters to a range of borrowing needs with initial loan amounts of ₱1,000 to ₱7,000 for first-time borrowers. Repeat borrowers can access higher loan amounts, reaching up to ₱30,000. This lending platform emphasizes a quick turnaround, with loan terms starting at 10 days. Notably, Online Loans Pilipinas distinguishes itself by not imposing any processing fees for first-time borrowers, providing an incentive for those exploring online lending options for the first time.

Editorial Opinion

Important

How to Choose a Lender in the Philippines

1. Ensure that the lender is registered with the Securities and Exchange Commission (SEC) of the Philippines.

2. Investigate if the lender is a member of recognized industry associations in the Philippines, such as the Chamber of Thrift Banks or the Philippines Finance Association.

3. Carefully examine all terms and conditions of your loan contract. This includes understanding the repayment schedule, fees, and any penalties for late or missed payments.

4. Payday loans can have high-interest rates. Make sure the contract clearly outlines the interest rate and total cost of the loan, including any processing fees or additional charges.

5. Familiarize yourself with your rights regarding cancellation. In the Philippines, consumers may have the right to rescind the loan within a specific period after signing the agreement.

6. Research the lender's reputation through customer reviews, complaints, and feedback available online.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 50 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

We carefully considered the most critical factors in selecting a lender in each category. These factors include interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

Sources

• Balikbayad 21.12.2023