Tue. May 21st, 2019
owwa loan

OWWA Loan Basics

Many Overseas Filipino Workers (OFWs) aspire of making their own fortune away from the country to secure the future of their loved ones. While indeed promising and high-paying, an overseas job should not be considered a permanent option.

An overseas job will certainly push the OFWs to go through hardship and sacrifices just to provide the basic needs of their families. To make it worse, many OFWs still end up with nothing after completing a working contract since they fail to save while they can. Fortunately, the Philippine government has developed an initiative to help these returning OFWs start a new life upon returning home.

The OWWA reintegration program

The Overseas Workers Welfare Administration (OWWA) Reintegration Program intends to assist all active and returning OFWs as well as their families through different income-generating schemes and livelihood assistance. In cooperation with Landbank of the Philippines and Development Bank of the Philippines, the reintegration program provides a loan facility where former OFWs will be allowed to borrow money for a new business.

As a viable alternative to overseas employment, the loan program supports the enterprise development initiative among Filipino migrant workers and their families. This financial assistance program is open to all bona fide members of OWWA, whether they are working sea-based or land-based. Furthermore, the applicant should have a valid contract whether working as direct-hired or hired through an accredited agency.

OWWA loan requirements

OWWA will require an interested OFW to submit the following documents for the approval of his or her application. The required documents are as follows:

  1. Photocopies of two government-issued IDs (including a valid passport, professional license card, driver’s license, postal ID, voter’s registration, TIN and others). Submitted IDs should clearly bear your picture and official signature.
  2. Proof of OWWA contribution, such as POEA-verified employment certificate, OWWA information sheet, a passport with POEA-LAC stamp or E-card.
  3. Barangay Certificate as proof of your current residence.
  4. Income Tax Return (ITR) for at least three years whether self-employed or company-employed.
  5. Proof of billing address such as water, electric and mobile phone bills.
  6. Mayor’s permit (where your business will be established). If you already have an existing business, BIR-financial statements for the last three years will be required.
  7. Collateral documents (verify with OWWA).
  8. A Recent statement of assets and liabilities.
  9. Birth certificate for single-loan applicants and marriage certificate for married applicants.
  10. Sketch of current home address.

Prompt approval

The OWWA loan will allow every successful applicant to borrow between PHP100,000 and two million pesos with a 7.5% annual interest rate, provided that the loan amount will only be used for business purposes and nothing else. If you wish to have your loan documents approved, here’s what you need to check:

  1. Verify the current status of your OWWA membership, particularly the OWWA contribution records. You can also acquire the membership certification from the designated Welfare Officer in the Philippine embassy where you are located.
  2. Complete the documents required by OWWA and partner banks to determine your credit paying capacity.
  3. Support your documents with seminar certificates provided by OWWA and POEA.

OWWA understands the high demands of daily living for the OFWs and this special loan facility hopes to encourage the modern heroes to stay in the country for good.

Source: OFWtayo

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