The Land Bank of the Philippines is offering up to 2,000,000 pesos loans to overseas Filipino workers in its OFW Reintegration Program (OFW-RP).
This is a program that will provide opportunities for OFWs to engage in business as an alternative to overseas employment, as stated on its website. Loanable amount starts from 300,000 to 2,000,000 pesos.
Here are the details of Land Bank’s OFW Reintegration Program (OFW-RP).
- Eligible Borrowers – OFWs certified by OWWA on membership and capacity building program attended
- Eligible Projects – Viable projects that will generate a net income of at least equal to the poverty threshold set by NEDA.
- Loan Purpose – Working Capital Fixed Asset Acquisition
- Amount of Loan – Minimum of P300,000 Maximum of P 2 Million
- Term of Loan – Based on cash flow but not to exceed 7 years (inclusive of 2 years grace period)
- Loan Security – REM, Chattel on Machinery & equipment, Hold-out on deposit, Deed of Assignment on inventory & receivable
What are the processing requirements?
- OWWA certification that borrower is a bonafide overseas worker, has completed Enterprise Development Training
- A business plan on the specific project that will generate income for OFW and his/her family
- With contract growing agreement, purchase order or service contract, if applicable
- Certificate of Registration with DTI
- Bio-data of applicant
- Mayor’s Permit
- Income Tax Return (last 3 years), if applicable
- Financial Statements (last 3 years, BIR-filed), if applicable
- Latest Interim Financial Statement, if applicable
- Statement of Assets and Liabilities
How to avail the Loan?
- Visit the nearest OWWA Office and undergo orientation/necessary training
- Secure the required OWWA Certification for submission to LANDBANK
- Visit the nearest LANDBANK Lending Center or LANDBANK Branch for more information and evaluation of the project proposal
Who are the eligible borrowers?
Eligible borrowers are those OFWs who is a certified OWWA member, active or non-active. Has completed the Enhanced Entrepreneurial Development Training (EEDT).
What are the Eligible Projects?
Examples of eligible projects are franchising business, contract tie-up with top 1,000 corporations; agri / non-agri production/manufacturing, construction / rental business, service/trading business, transport service or any viable projects whether new or existing.
How much is the Interest rate?
Interest rate is 7.5% per year for the entire duration of the loan. Just for comparison, loan sharks are offering 1.5% per month. That is 18% per year.
How much can we borrow?
Individual loan borrowers or single proprietorship can borrow from 100,000 to 2,000,000 Pesos and Group loans (partnership, corporations or cooperatives), can borrow up to 5,000,000 Pesos
Source: Land Bank