AUB Seafarers Loan: Features and Application Process for Mariners

The life of a seafarer is unique, characterized by long periods away from home, a unique income structure, and specific financial needs. Recognizing these distinct circumstances, Asia United Bank (AUB) has tailored specialized loan products, particularly its AUB Seafarers Loan, designed to empower Filipino mariners and their families. This comprehensive guide will delve into the specific features of the AUB Seafarers Loan, its numerous benefits, and the streamlined application process, ensuring that Filipino mariners can navigate their financial aspirations with ease and confidence.

Understanding the AUB Seafarers Loan: Tailored for Mariners

The AUB Seafarers Loan (often categorized under AUB Personal Loan or specialized OF-HOME Loan products for Overseas Filipinos) is a credit facility specifically crafted to meet the financial demands of active Filipino seafarers. Unlike generic personal loans, this product takes into account the seafarer’s contractual employment, regular allotments, and unique working conditions. It aims to provide readily accessible funds for various purposes, from family needs and home improvements to starting a business or purchasing assets.

Why a Dedicated Seafarers Loan?

• Unique Income Stream: Seafarers receive their income in foreign currency, often through allotments to their families, and have specific contract durations. AUB’s loan products are structured to accommodate this.
• Proof of Income Challenges: Traditional loan applications can be difficult for seafarers due to their absence and the nature of their employment contracts. AUB simplifies this.
• Specific Needs: Seafarers and their families often have distinct financial goals, such as buying property, investing, or financing educational needs while the principal earner is at sea.

Key Features and Benefits of AUB Seafarers Loan

The AUB Seafarers Loan offers several compelling features that make it an attractive option for Filipino mariners:

1. Flexible Loan Amounts:
   • Loan amounts are typically based on a multiple of the seafarer’s net monthly allotment or gross monthly salary, ranging from several tens of thousands up to a few million Philippine Pesos.
   • This flexibility allows mariners to fund various significant expenses, from small emergencies to larger investments.
   • Minimum loan amounts can start from Php 50,000 to Php 100,000, with maximums potentially reaching Php 2 Million or more, depending on the seafarer’s income, company, and credit standing.
2. Manageable Repayment Terms:
   • Repayment periods are designed to align with a seafarer’s contract duration and financial capacity, often ranging from 6 months to 36 months (3 years), and even up to 60 months (5 years) for larger, secured loans (e.g., home loans for seafarers).
   • This provides flexibility in choosing a comfortable amortization schedule.
3. Competitive Interest Rates:
   • AUB aims to offer competitive interest rates for seafarers, taking into account the slightly higher perceived risk of overseas employment. Rates are typically quoted as add-on rates per annum, similar to other consumer loans.
   • Illustrative Add-on Rates (Subject to Change): For short-term personal loans, rates might range from 1.5% – 2.5% per month (add-on), while for longer-term, higher-value loans (like a specialized home loan for seafarers), the rates would be lower, potentially aligning with standard home loan rates but with specific seafarer-friendly eligibility criteria.
4. Convenient Repayment Scheme:
   • Repayments are typically facilitated through auto-debit arrangements from the seafarer’s or their allottee’s AUB account, often linked to the regular allotment. This ensures timely payments even when the seafarer is abroad.
5. Versatile Loan Purposes: The funds from an AUB Seafarers Loan can be utilized for a wide array of purposes, including:
   • Family Support: Education of children, medical emergencies, daily expenses.
   • Home-Related Needs: Home renovation, down payment for a house and lot, or property acquisition.
   • Vehicle Purchase: Down payment or full purchase of a car/motorcycle.
   • Business Capital: Seed money or expansion for a family business.
   • Debt Consolidation: Managing multiple smaller debts into a single, more manageable loan.
   • Personal Investments: Funding various investment opportunities.
6. Simpler Documentation (Compared to Generic Loans): AUB has a clear understanding of seafarer documentation, simplifying the process of proving income and employment stability.
7. No Collateral Required (for Personal Loans): Many AUB Seafarers Loan products are unsecured, meaning no collateral is needed, making them more accessible. (Note: For larger loans like home loans, the property itself serves as collateral).

Eligibility Criteria for AUB Seafarers Loan

To qualify for an AUB Seafarers Loan, applicants generally need to meet specific criteria tailored to their profession:

1. Citizenship: Must be a Filipino citizen.
2. Age: Typically, between 21 years old and 60 years old upon loan maturity.
3. Employment Status:
   • Active Seafarer: Must be an actively employed Filipino seafarer.
   • Valid Contract: Possess a valid and existing employment contract, usually POEA-verified.
   • Minimum Length of Service: Some products may require a minimum number of years of experience or tenure with a reputable shipping company.
   • Reputable Shipping Company: Employment with AUB-accredited or reputable international shipping companies.
4. Income Stability:
   • Minimum Gross Monthly Allotment/Salary: A prescribed minimum gross monthly income (or allotment equivalent) is required to ensure repayment capacity. This typically ranges from USD 800 – USD 1,000 or its equivalent in PHP.
   • Consistent Allotment: Proof of consistent remittances/allotments to an AUB account or other local bank accounts.
5. Credit Standing:
   • A good credit standing with no adverse credit records (e.g., history of loan defaults, bounced checks).

AUB Seafarers Loan Application Process: Step-by-Step

The application process for an AUB Seafarers Loan is designed to be as efficient as possible, especially considering the seafarer’s time away from home.

Phase 1: Preparation and Initial Inquiry

1. Determine Your Needs and Capacity: Assess how much you need and how much you can comfortably repay monthly based on your allotment.
2. Gather Required Documents: Proactively collect all necessary personal, employment, and financial documents. This is the most crucial step for a fast approval.
   • Standard Documents:
     • Duly accomplished AUB Loan Application Form.
     • Photocopy of two (2) valid government-issued IDs with photo and signature (e.g., Passport, Driver’s License, SSS/UMID ID, PRC ID).
     • Photocopy of Marriage Contract (if applicable).
     • Proof of Billing (local address, even if not under applicant’s name, with Barangay Certificate if needed).
   • Seafarer-Specific Documents:
     • Photocopy of latest POEA-verified employment contract.
     • Photocopy of Seaman’s Book (pages with personal data and travel history).
     • Photocopy of Passport (pages with personal data and latest arrival/departure stamps).
     • Latest 3-6 months’ payslips/allotment slips/bank statements showing consistent remittances from your employer.
     • Seafarers Registration Certificate (SRC) or Worker’s Information Sheet (WIS) from POEA.
     • Allotment Arrangement certified by your manning agency or shipping company.
     • Crew List from your latest vessel (if applicable).
   • For Attorney-in-Fact (AIF) / Allottee:
     • Photocopy of two (2) valid IDs of the AIF/Allottee.
     • Special Power of Attorney (SPA), if the AIF will sign on behalf of the seafarer. This needs to be notarized and consularized/apostilled if executed abroad.

Phase 2: Application Submission and Evaluation

1. Submit Application: You or your appointed Attorney-in-Fact/Allottee can submit the complete application package to any AUB branch.
2. Interview and Verification: AUB will conduct an interview (can be done via video call for the seafarer if abroad) and verify the authenticity of documents and employment details with the manning agency or employer. A credit check will also be performed.
3. Loan Approval: If your application meets all criteria, AUB will issue a loan approval, detailing the approved loan amount, interest rate, and terms. The speed of approval largely depends on the completeness of your documents and prompt verification.
4. Sign Loan Documents: The seafarer (or their AIF with a valid SPA) will sign the loan agreement, promissory note, and other relevant documents.

Phase 3: Loan Release and Repayment Setup

1. Loan Disbursement: Upon completion of all requirements and signing, the loan proceeds are typically disbursed directly to the seafarer’s or allottee’s AUB account.
2. Auto-Debit Arrangement: The agreed-upon monthly amortizations will be automatically deducted from the designated AUB account on the due dates, usually coinciding with allotment arrivals.

Tips for a Smooth AUB Seafarers Loan Application

• Organize Documents Meticulously: Given the unique nature of seafarer documents, present them clearly and logically.
• Ensure Allotment Consistency: Make sure your allotments are regularly credited to your AUB account, as this strengthens your income stability proof.
• Appoint a Reliable Attorney-in-Fact: If you are abroad, empower a trusted family member with a comprehensive SPA to handle the process for you.
• Maintain Good Credit History: Pay all your existing obligations on time. A strong credit record will always lead to better loan terms.
• Communicate Clearly: Ensure clear communication with your manning agency, AUB loan officer, and your AIF to address any queries promptly.
• Inquire About Current Promos: AUB may have special promotions for seafarers from time to time; always ask about these.

Conclusion

The AUB Seafarers Loan is a testament to AUB’s understanding of the unique financial landscape of Filipino mariners. With tailored features, flexible terms, and a streamlined application process, it provides a vital financial lifeline for seafarers to achieve their personal and family goals, whether for immediate needs or long-term investments. By carefully preparing and understanding the requirements, Filipino mariners can confidently embark on their financial journey on solid ground, even while navigating the high seas.