Loans Available for OFW

The Philippine Government particularly OWWA (Overseas Workers Welfare Administration) which is the lead institution that serves the interest and welfare of member-Overseas Filipino Workers (OFWs) has come up with a program which main purpose is to help and Finance some livelihood programs of OFW and their families through Financial Loans. Please see below the description and the criteria for the said program.


What is the OWWA-NLSF Livelihood Development Program?
This program is a joint undertaking of OWWA and National Livelihood Support Fund (NLSF). to address the economic component of the OFW Reintegration Program.

It is meant to further improve access to entrepreneurial development opportunities and credit facilities to OFWs, their families, and organizations.

Enterprises may include:

(a) trading (general merchandise and buy and sell, etc.);
(b) services (repair shops, restaurants, parlors, etc.);
(c) manufacturing (meat/fruit processing, shoes, etc.); and
(d) agri-business (tilapia culure, piggery, poultry, etc.).

The OWWA-NLSF Livelihood Development Program currently has the Collateral Loan Window for individual and group borrowers.

Acceptable Purposes of Loan

1. Working capital – for purchase of merchandise goods and/or raw materials
2. Business assets acquisition (except lot) – for purchase of machines/equipment
3. Business site construction or improvement

Eligible Borrowers

1. Member-OFWs and former member-OFWs
2. Their immediate family members (one family member per one OFW)
3. For married OFWs: spouses or children of legal age
4. For single OFWs: parents or siblings of legal age
5. OWWA LDPO beneficiaries with good repayment records
6. Legally organized groups of OFWs (partnerships / corporations, OFW organizations / associations / cooperatives & Federations)

Additional Information:


ELIGIBLE BORROWERS:

OFW with at least one OWWA contribution
Legal Dependent (if married, legitimate spouse; if single, parents)

ELIGIBLE PROJECTS:


Projects with confirmed market or Purchase Order or Service Agreement or Contract Growing Agreement that will generate net monthly income of at least Php 10,000.00

LOAN AMOUNT:


Minimum - Php 300,000
Maximum - Php 2 million

INTEREST RATE:


7.5% per annum fixed for the duration of the loan

LOAN PURPOSE:

Working Capital
Fixed Assets Acquisition

PROJECT COST SHARING (DEBT-EQUITY RATIO):


Borrower’s Equity – Minimum of 20% of the Total Project Cost (TPC)
Loan – Maximum of 80% of the TPC

LOAN REPAYMENT:


Short Term Loan – Maximum of one Year
Term Loan – based on cash flow but not to exceed 7 years inclusive of maximum of 2 years grace period on the principal

PROCESSING REQUIREMENTS:


OWWA/RWO issues Certification that the borrower is a bonafide overseas worker, has completed Entrepreneurship Development Training (EDT), and has credit history (if any)
Certificate of Registration with DTI
Bio-data of Applicant
Mayor’s Permit
Income Tax return (last 3 years
Latest interim Financial Statement, if applicable
Statement of Asset and Liabilities

Source: OWWA 2-Billion Peso Reintegration Program for OFWs

Note: Please be advised that I am merely disseminating the good news for OFWs. Links are provided for you to check for more details and information. It saddens me that I am not being able to answer all your questions on the comments below as I am not the right person to do so. Though I will keep on updating this post and add more information when available. But keep on posting your questions below and I'll try to find the answers for you.

Another program that OFWs can try is BDO (Banco De Oro) Asenso Kabayan Personal Loan Unsecured. See below is a part Description of the said loan program.

GENERAL CREDIT CRITERIA

CRITERIA                                               DESCRIPTION

AGE:                  25 years old upon loan application to 65 years old upon loan maturity

MINIMUM MONTHLY INCOME:  Gross monthly income (GMI) of Php. 20,000 or its USD equivalent

CITIZENSHIP:          Foreign based Filipinos / OFWs

TELEPHONE:          Has at least one (1) landline at either local or foreign
                                  residence or employment location.

TRADING AREA:         Beneficiary must be living or working within BDO
                                      serviceable areas
                                      (30 km radius from any BDO branch)

EMPLOYMENT:          >=2 years continuous employment/employment
                                     contract 24 months straight contract to 1 employer
                                     >=1 year with previous employer plus current
                                     employer tenure should total 2 years employment
                                     Multiple contracts for >=2 consecutive years
                                         (e.g. 2005-10 months, 2006-8 months)

For more details: BDO Asenso Kabayan Personal Loan 
For full Requirements: BDO Asenso Kabayan Personal Loan Application Form