FINANCIAL WELFARE of OFWs

Research paper presented to:

Ms. Jobelle Marra Garcia

General Mathematic Teacher

by:

Lalaine Suzzane Cue

John Dave Custodio
Monica Angela Estabillo
Glydel Esparagoza
Analyn Deniega
Aira De Guia
Nathaniel Deleon
John Cristian Dizon
CART101P

October 2016

CHAPTER 1

INTRODUCTION

This study implies and determine the importance and rights of Overseas Filipino
Workers. In this study, the researchers will identify on which Lending Companies do the OFWs
deserve and which is more reliable to use. This study will determine the rights, importance, and
the right treatment for the workers. This study will also help us to identify and understand the
advantages and disadvantages of the Lending Companies being compared. The researchers will
able to see which one can we endorse and which one deserves the best lending company for a
recommendation. This study simply states that OFWs has their own rights to choose on which
Lending Company is reliable for them to loan. OFWs are the person of Filipino origin who lives
outside of the Philippines. This term applies to Filipinos who are abroad indefinitely as citizens
or as permanent residents of a different country and to those Filipino citizens abroad for a
limited, definite period, such as on a work contract or as students. Most of them are domestic
helper, construction worker, seaman, medical worker, engineer, factory worker and entertainer.
Precisely, they are the one who sacrifice their time and happiness with their families to work in
foreign countries. Instead of spending their time for their loved ones theyre still working for
them just to live the life they need. But thats not the only problem they are facing. Financial
problem, is one of the problem that OFWs are commonly facing. One of the reasons they wanted
to work abroad is that other countries offers higher amount of money, but some of them still
experience financial problems despite years of hard work due to inefficient money management
but, there are lending companies that are willing to help the OFWs.

CHAPTER 2
DATA GATHERING INSTRUMENT

The researchers used a summary questionnaire to gather responses from the different
lending companies.

Below are the following questions being asked to the respondents:

1. Why do you choose to work abroad?
2. Why do you choose to work in other country instead of working here in the
Philippines?
3. What type of lending company do you prefer in loaning?
4. In working abroad, are you satisfied on the salary you receive?
5. What inspires and motivates you to work in abroad?
6. What are the problems that OFWs are commonly facing?

And also, here are some questions for the lending companies:
1.
2.
3.
4.
5.

What are the advantages and disadvantages on choosing this lending company?
Is this a secured lending company?
How long is the payment period?
What is the lowest interest rate and fee combination that you offer?
How long will I be repaying the loan? Is there any penalty for paying off the loan
early?
6. Will there be fees in application or processing?
7. Will my loan be approved even with bad credit records in the past?
8. Is there a penalty for pre-payment?
9. Can I borrow any amount of money?
10. How can I apply?
These are the questionnaire that the researchers used to gather the data from the respondents.

CHAPTER 3
DATA GATHERED FROM THE RESPONDENTS
INTERVIEW OF 3 PERSONS FOR EACH LENDING COMPANY
First Person
Name: Nathalie Sabiniano
Age: 38
Days of working abroad: 4 years
Country: Dubai
Work: Factory Worker
1. What kind of loan do you prefer/want?
I prefer a loan that is a high secured.
2. What lending company do you loan?
Pagasa lending company.
3. How much is the interest rate of this company?
15%
4. How long is the payment period?
12 months
5. How much do you loan in every month?
15000
6. Why do you choose to work abroad?
I chose to work to raise my own family.
7. Why do you choose to work in other country instead of working here in the
Philippines?
It is better to work in other country because there are lots of opportunities.
8. In working abroad, are you satisfied on the salary you receive?
Yes I am satisfied on the salary that I receive monthly. In fact I can still save money
for my future needs.
9. What inspires and motivates you to work in abroad?
My husband and my children inspires and motivate me to work here in abroad, they
give me strength and courage.
10. What are the problems that OFWs are commonly facing?

Based on my experience one of the problems that OFWs are commonly facing is the
lack of money to send to their families in the Philippines.

Second Person
Name: Rafael Perez
Age: 32
Days of working abroad: 9 months
Work: Seaman
1. What kind of loan do you prefer/want?
I want a loan that offers low interest rate.
2. What lending company do you loan?
123 Lending company
3. How much is the interest rate of this company?
3.7 %
4. How long is the payment period?
12 months
5. How much do you loan in every month?
50000
6. Why do you choose to work abroad?
I work abroad for my mother that is suffering from cancer.
7. Why do you choose to work in other country instead of working here in the
Philippines?
I would rather choose to work here than in the Philippines because I know that
working in here is much better.
8. In working abroad, are you satisfied on the salary you receive?
Not really, the amount of money that Ive been receiving is not yet enough to help my
mother.
9.What inspires and motivates you to work in abroad?
My mother and other relatives who encourage me and motivates me all the time.
10.What are the problems that OFWs are commonly facing?
Lack of money.

Third Person
Name: Angela Tiangco
Age: 28
Days of working abroad: 1 and a half year
Work: Entertainer
1. What kind of loan do you prefer/want?
I want a loan that easier and reliable to use and has low interest rate.
2. What lending company do you loan?
Vidalia lending corporation
3. How much is the interest rate of this company?
5%
4. How long is the payment period?
12 months
5. How much do you loan in every month?
13000
6. Why do you choose to work abroad?
I want to work here for myself.
7. Why do you choose to work in other country instead of working here in the
Philippines?
It is more better to work here, the foods are good and the places are clean unlike in
the Philippines.
8. In working abroad, are you satisfied on the salary you receive?
I am not satisfied on the salary that Ive been receiving.
9. What inspires and motivates you to work in abroad?

My family and myself.

10. What are the problems that OFWs are commonly facing?
Most of the time the problem is the lack of money to save.

INFORMATIONS OF THE LENDING COMPANIES

The researchers chose 3 different lending company which can satisfy the needs and
demand of the OFWs in loaning. The researchers chose PAGASA lending company, 123 lending
company and lastly, Vidalia lending company. And here are some information about the
following lending companies.
PAGASA PHILIPPINES LENDING COMPANY INCORPORATION
PAGASA lending company has its own mission, vision, and goals. Its mission and vision
is to establish a poverty-free society and to provide an avenue and opportunity for the
entrepreneurial poor having an access to financial services to improve their economic and social
condition. While PAGASA lending companys goal is to provide sustainable financial services to
the entrepreneurial poor, to enhance their enterprises, thereby, to make them economically selfreliant. PPLCI offers two credit programs; small general loan and small business loan and both
loans have 15% interest for 12 month terms.

123 LENDING COMPANY

123 lending company has its own mission which is to provide a quick easy friendly loan
service for their clients. They assist them to meet lending requirements, they also collect loan
obligations in a professional supportive environment and they achieve a win/win for their client
and company. In applying this company, loaners should pass the requirements needed. The
current interest rate of this lending company vary from 2.9% - 3.7% for about 6-12 months.

VIDALIA LENDING CORPORATION

This lending company offer different types of loans to meet lenders
different monetary needs. Now, they are also offering other kinds of loans to
accommodate the financial needs of professionals based in the Philippines.
You can get the loan you need at low lending rates around 2 % to 5% and
flexible payment terms of 3 months; 6 months; 8 months; 12 months.

Those are the information we gathered from the following lending company.

TABULAR COMPARISON

Name of Company

123 Lending Company

Pagasa Lending Company

Vidalia Corporation

Loanable Amount

2x Salary

2x Salary

2x Salary

Interest Rate

3.7%

15%

5%

Duration

12 months

12 months

3-12 months

Table no. 1

This table of comparison shows the information about the lending company which
includes the loanable amount, interest rate and the term or duration.

COMPUTATION
This part will show the computation of each lending company to find the Interest Rate
and Future Amount that youll get after the month/ year of terms. The following computation
used ad Ordinary Interest formula in getting the Io and FA.

Pagasa (PPLCI)

Vidalia Lending Corporation

P= 15,000
r= 15% or 0.15
t= 12 months or 365 days
365 360

I =15000 x 0.15
Io= 2,281.25

P= 13,000
r= 5% or 0.05
t= 12 months or 365 days
365 360

I= 13,000 x 0.05
Io= 659.03

FA= 15,000 + 2,281.25

FA= 13,000 + 659.03

=17,281.25

123 Company
P=50,000
r= 3.7 or 0.037
t= 1 year or 365 days
365 360

I= 50,000 x 0.037
Io= 1,875.69

= 13,659.03

FA=50,000 + 1,875.69
= 51,875.69

COMPARING LENDING COMPANIES

We, as a researcher was given an opportunity to compare 3 lending companies to gain
some information that is needed for us, to know. Each of the three (3) lending companies has
different goals to aim, mission and vision, philosophy, service, product, rules, rates and different
managing system and processes. 123 Lending Corporation, Pagasa Lending Company, and
Vidalia Lending Corporation- these are the lending companies that we chose to differentiate. And
based on our studies, we have concluded that Vidalia Lending Corporation has better service and
benefits for OFWs. Based on our research, Vidalia Lending Corporation offers an easy way or
more effective way to loan. One of the advantages of getting a loan with their company is the
application for a quick and easy cash loan. Most OFW's need to acquire money fast and easy to
be able to go directly abroad and supplement their financial instability. Vidalia Lending
Company provides an immediate loaning facility where an application is practically approved
and be given just within the day or night. Their cash loans for OFWs placement fees to help you
work abroad is relatively speedy to obtain. Secondly, simple requirements to submit in applying
for a Vidalia loan is just very simple and straightforward. They do not require their clients to fillout unnecessary forms nor submit dispensable requirements because their consumers are their
number one priority. Compare their rates and offerings, and see for yourself. The advantages you
can get are numerous. Thirdly, Vidalia is excellent in its customer service and is proficient to
handle the Filipino migrant's financing needs. Their loan agents will go an extra mile to help you
with clients options. Also, not to be bothered paying for a high interest rate, consumers are
assured that no further dilemmas can arise as they have a vision of what we can fully give for
their customer's satisfaction. Their interest rates are low enough for you to secure a loan with
them. Last but not the least, a Vidalia loan has very flexible terms of payment (6, 9, 12 months).
This company will allow clients to loan an amount that will be sanctioned and approved for you
based on your repayment capability. You get the advantage of the speed with which one can get
approved online especially on emergency situations that can be handled easily through your
online application of loan with this Lending Company. And as a consultant, we endorse this
company for OFWs that are planning and starting to loan.

CHAPTER 4
RECOMMENDATION

We, as a researcher, based on our study, we have concluded that Vidalia Lending
Corporation has better service and benefits for OFWs. Based on our research, Vidalia Lending
Corporation offers an easy way or more effective way to loan that will really help the OFWs. We
highly recommend this lending company, cause as a consultant we know the benefits that this
lending company can give for the OFWs.
CONCLUSION
We have a lot of lending companies in the Philippines that are willing to help OFWs.
Such as PAGASA Lending Company, 123 Lending Company, and Vidalia Lending Company.
For OFWs, to start loaning to fulfill their financial needs. Loaning is the best way to prevent
their financial needs because in case of emergency they dont need to use their personal savings
instead they can use their loan. One of the advantages of getting a loan with lending companies
are the application for a quick and easy cash loan. Most OFWs need to acquire money fast and
easy to be able to go directly abroad and supplement their financial instability. Lending
companies provides an immediate loaning facility where an application is practically approved
and be given just within the day or night. Lending companies cash loans for your placement fees
to help you work abroad is relatively speedy to obtain. Secondly, applying for a lending loan is
just very simple and straightforward. Thirdly, Lending companies are excellent in its customer
service and is proficient to handle the Filipino migrant's financing needs. lending companies loan
agents will go an extra mile to help you with your options. Before you start a loan they should
passed the requirements needed. They must be 18 to 59 years old. Filipino citizens, have source
of income, they should have landline or contact number to contact, employed by at least 1 year.
You can choose your lender that you want to lend your money by visiting their website online.
The type of loan you should get is business loan and SME loan to secure your money, you can
also know how much you can borrow by online loan calculator it will calculate the money of the
lender and itll also tell you how much you can borrow. If you have some bad credit records in

the past you can prove yourself by fixing your problems. This is how lending companies can help
us with our own loans.

Reference

http://ticas.org/content/posd/questions-students-should-ask-about-private-loans
https://enlightenme.com/top-10-questions-before-getting-a-loan/
http://www.getsmarteraboutmoney.ca/en/managing-your-money/planning/managingdebt/Pages/Six-questions-to-ask-before-you-borrow.aspx#.V7XnF49OLmJ
http://www.dole.gov.ph/pages/view/19
http://123lendingcorp.com/ofw-loan.html
http://asa-international.com.ph/
http://www.delawarepersonnel.com/training/special/hrc/docs/sample-letters.pdf
http://elms.sti.edu/files/3547379/iLS_Guide_for_Students(2)_lmsauth_edbaf16f7d52efb694e7b8
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