DOLE-OWWA Offers Low-Interest Business Loans To Returning OFWs Worth 100K to 2M Pesos

To help OFWs and their families start or sustain their own business after returning from abroad, the Department of Labor and Employment–Overseas Workers Welfare Administration (OWWA) and the Department of Trade and Industry (DTI) implemented the OFW-Enterprise Development and Loan Program (OFW-EDLP) that will allow OFWs to avail a livelihood loan assistance amounting to 100 thousand pesos and up to 2 million pesos.

This was announced by Labor and Employment Secretary Silvestre H. Bello III following the signing of memorandum of agreement on September 6th.

The OFW-EDLP, which is implemented in partnership with Land Bank of the Philippines and the Development Bank of the Philippines, aims to help OFWs and their families to pursue entrepreneurial undertakings.

Loading…

The loanable amount for qualified individual borrowers is from Php 100,000.00 up to a maximum of P2 million. For group borrowers, they can borrow up to a maximum of P5 million.

Qualified Clients:

* All active and former member-OFWs of the Overseas Workers Welfare Administration (OWWA)
* OFWs’ immediate family members (but only one family member per OFW can avail)
   – For married OFWs: spouse or children of legal age
   – For single OFWs: parents or children of legal age
* Former OWWA LDPO borrowers with good records of repayment

Applicants interested to avail of the OFW enterprise development and loan program must secure the required documents to ensure smooth processing of their loan application:

1. OWWA certification stating that the borrower is a bona fide overseas worker.

2. Duly filled-out EDLP application form (including statement of assets and liabilities).

3. Business plan (including financial projections, source of equity, list of suppliers/markets or buyers and contact numbers).

4. Barangay certification as to residency in a given address.

5. Sketch of place of residence.

6. Special Power of Attorney (SPA), if applicable. For those working abroad, the SPA must be duly authenticated by the consul.

The loanable amount carries a fixed interest rate of 7.5 percent per annum for the duration of the loan. It can be used either as working capital or for acquisition of fixed assets needed for business operations.

However, the program requires that the proposed project should have a ready market and should generate a monthly income of at least P10,000. Borrowers can choose a short-term loan, which can be paid within a year, or a long-term loan which is payable based on the cash flow but not to exceed seven years, inclusive of the maximum two-year grace period on the capital.

For more information on this program please visit: National Livelihood Development Corporation and Philippine Information Agency