It seems very difficult for a returning OFW to return to lead a new life after working a long time from abroad. They need a lot of patience, adjustments around them and newly acquired skills to begin with.
There are many reasons why OFWs return home to the Philippines. They may include the end of working contract, work displacement or long-time family decision to start a new life back home. Most OFWs are fully aware that there is no permanent job in the international soil and they need to prepare for all circumstances. For whatever reason, a returning OFW should know the good benefits of applying for the OFW Reintegration Program developed by the Philippine government under DOLE and OWWA.
The reintegration program was established for the OFWs and their families to have alternative means of income other than overseas employment. It was created by OWWA as a loan facility in cooperation with Development Bank of the Philippines and Land Bank. There are business opportunities available for all returning OFWs including franchising services, trading, transport services, manufacturing and various business services. The loan amount will start at 300,000 PHP with a maximum allowable amount up to 2 million Php.
The reintegration program will provide new knowledge and business skills that the OFWs can learn to make their choice of business more profitable. This embodies a provision of adequate training and counselling services for better management and progress monitoring. Payment terms are also flexible enough to help the OFWs earn a modest income every month. Loans are payable in one year and 7 years depending on prevailing status.
The reintegration program is a great way to help OFWs pursue their passion and grow big in the years to come. An effective strategy to help former OFWs move up from the poverty threshold. Interesting applicants should be an OWWA bona fide member in order to access this loan facility. Multiple proprietorship, corporation or cooperative group can be given a higher loan amount depending on the business project.
It’s not too late for OFWs to start a new life after a long time. They only need to become interested to open up a new business with the assistance from the Philippine government. The OFWs are encouraged to stay in the country for good. Indeed, the government is willing to extend all available resources to help them become active again from the society they have been away for a long period of time.
- Only OFWs who are active members and are certified by OWWA can apply for the OFW Reintegration Program. An eligible borrower can either be individual (single proprietorship) or by group (partnership, cooperative, or corporation).
- Purpose of the loan must be for working capital or fixed asset acquisition.
- Loanable amount is between P100,000 to P2,000,000
- A short-term loan is for a maximum of one year, while long-term loan depends on the cash flow, but most not exceed seven years and inclusive of two years grace period.
- 7.5% interest rate per annum
- Proposed business must generate at least P10,000 net monthly income. It could be a franchising business, transport service, trading or service business, construction or rental, agriculture and non-agriculture production or manufacturing, or contract tie-up with Top 1000 corporations.
- Loan security is required such as real estate mortgage, chattel on equipment or machinery, Deed of Assignment on inventory or receivables, or hold-out on deposit
Below are the requirements for OFW Loan you need to submit in case you want to avail of this facility:
- OWWA certification as proof that you are a bona fide member
- Certificate of Completion of Enterprise Development Training (EDT). Read more about it here.
- Bio-data of the applicant
- Business-related documents and permits such as business plan, Certificate of Registration with DTI, and Mayor’s Permit
- If applicable, at least three years Income Tax Return, BIR-filed Financial Statements, and latest Interim Financial Statements
- Statement of Assets and Liabilities
How to Apply for OFW Loan:
- Visit the OWWA Office near you to undergo the required training. You will be asked to undergo training in relation to this loan facility.
- Secure the EDT certification then submit the other requirements to Landbank for evaluation and processing.
- Wait for at least 45 days upon submission of complete loan requirements to know the status of your loan application.
It is important that you submit complete requirements to avoid any delay and for faster processing of loan application.