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Pinoys in UAE advised to borrow from banks in PH

Filipinos in the UAE have been advised to borrow from banks in the Philippines instead of risking jail in the Gulf country due to non-payment of their debts.

About 7 percent or 15 of the 205 Filipinos incarcerated in Dubai and Ajman jails are due to non-payment of personal loans or bounced cheques, Gulf News quoted Labour Attache Ofelia Domingo as saying.

“There are many reasons why this could be happening. Based on the accounts of people we’ve spoken to, the main reason why they fail to pay is because they lost their jobs, they opened a business that went bust and went further into debt, or because they had to send money home for their daily needs or for emergencies,” Domingo reportedly said.

But Domingo was quoted as saying that Filipinos have an alternative to borrowing money in the UAE that does not put them at risk of imprisonment due to unintentional non-payment of loans.

The Landbank of the Philippines in cooperation with the Overseas Workers Welfare Administration (OWWA), for example, relaunched its OFW Reintegration Programme last week to allow Filipinos who are active OWWA members to borrow a minimum of 100,000 pesos (Dh7,300) up to 2 million pesos. This gives them a chance to engage in business as an alternative to overseas employment in the future, the report said.

The loan amount is on a 7.5 percent interest rate, payable within a maximum of seven years, including a two-year grace period. A Guaranteed Fund of one billion pesos is available, it added.

“If they need to take a loan, it’s good to borrow from Philippine government entities or banks because under Philippine law, no one can be imprisoned because of debt,” Domingo reportedly said. “They can apply for the loan here and processing will be done in the Philippines.”

For home loans, Pag-Ibig has packages available for its active members. The same goes for Social Security System members.

Filipinos who don’t want to take loans but want to grow their money have an option to invest a minimum of Dh2,400 in an Adopt-a-Farm scheme by the Philippine government and a non-government organisation called the Dubai EntrePinoy Reintegration Programme, said the news portal.

“The bottom-line here is Filipinos need to distinguish between risks and calculated risks. Filipinos should know their priorities and focus on their objectives as to why they came here to work,” Gulf News quoted Domingo as saying.

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