The LandBank of the Philippines is a government financial institution that promotes the socio-economic agenda of the National Government (NG). One of the programs of LandBank is the partnership with the Overseas Workers Welfare Administration (OWWA) which aims to provide business opportunities to Overseas Filipino Workers (OFWs).
The LandBank and OWWA’s partnership can help OFWs apply for the OFW Reintegration Program and Bahay para sa Bagong Bayani (3B).
OFW Reintegration Program
The OFW Reintegration Program of OWWA is one of the programs of OWWA and LandBank for OFWs who plan to build their own business and stay in the Philippines for good. OFWs can loan up to 2 million with flexible payment terms. The viable projects they prioritize, but not limited to, are the following:
- Franchising
- Agri and non-agri production and marketing endeavors
- Construction project
- Rental Services
- Trading business
- Transportation Services
- Contract tie-ups with the top 1,000 corporations
Eligible Borrowers
OFWs who want to apply for the loan must be certified and endorsed by OWWA. Without it, OFWs can’t apply and won’t be entertained by LandBank. OFWs must also meet other criteria such as:
- OWWA active member
- Has completed attending the Enterprise Development Training (EDT)
Loan Purpose
OFWs can only use the loan for Working Capital and Fixed Asset Acquisition. The loan in LandBank is not a personal loan and can not be used for education, medical, and other purposes.
Project Cost Sharing
- Borrower’s Equity – OFWs must shoulder at least 20% of the Total Project Cost (TPC) of their project or business.
- Loan – The LandBank can lend a maximum of 80% of the Total Project Cost (TPC).
Loanable Amount
The LandBank allows borrowers to loan a minimum amount of Php 100,000 but the maximum amount you can loan depends if you are applying for a single proprietorship or group such as a partnership, corporation, or cooperative.
- Single Proprietorship – Php 2 million
- Group of OFWs (partnership, corporation, or cooperative) – Php 5 million
Interest Rate
LandBank offers a 7.5% interest rate per annum for Short-Term and Long-Term loans. Short-Term must be paid for a maximum of one year and Long-Term is based on the project’s cash flow but should not exceed seven (7) years including the maximum grace period on principal payment.
Collateral
Collaterals can be an object of financing or other securities acceptable to the bank.
Loan Requirements
Being endorsed by OWWA is not enough. OFWs must prepare documents required by the bank and ensure that all documents are correct and legitimate. Here’s the list of documents you need to prepare.
- Certification from OWWA indicating the legitimacy of the OFWs and completion of the Enterprise Development Training (EDT)
- Detailed Business Plan
- Certificate of Registration from the Department of Trade and Industry (DTI)
- Bio-Data of borrower
- Mayor’s Business Permit
- Income Tax Return (ITR) for the last three (3) years
- Financial Statement for the last three (3) years
- Latest Interim Financial Statement
- Statement of Assets and Liabilities
- Contract for purchasing order or service (if applicable)
Application Process
To apply for a loan in LandBank, make sure that you are qualified and that you have the requirements needed. If you think you are eligible, follow these easy steps:
Step 1: Go to the OWWA main office or the nearest OWWA Regional Welfare Offices for eligibility screening. If you are eligible, the OWWA officer will endorse you to undergo orientation and training.
Step 2: Once you are done with the orientation and training, the OWWA will give you a certificate that you will submit to the LandBank office.
Step 3: Visit the nearest LandBank Lending Center and submit the certificate from OWWA and other documentary requirements for evaluation.
Step 4: Wait for the LandBank evaluation result. Once the result is out, they will contact and you and give you instructions for the next step.
Bahay para sa Bagong Bayani (3B)
OFWs who dream of having their own house can now apply for financial assistance in LandBank under the Bahay para sa Bagong Bayani (3B) program. This program is dedicated to OFWs and their families to let them build a house with minimal interest rates and flexible payment terms.
Eligible Borrowers
OFW applicants must meet the qualifications set by the bank and OWWA before applying for this program. Check out the list of qualifications they set:
- Filipino citizen
- OWWA active member
- OFWs with active contracts from a reputable company
- Must be 21 years old and above but not more than 65 years old upon loan maturity
- No negative credit with other creditors
Loan Purpose
The Bahay para sa Bagong Bayani (3B) can not be used for purposes other than building, purchasing, or renovating a house. This program’s purpose is to purchase the following:
- Residential Lot
- House and Lot
- Residential Unit/Condominium/Townhouse
- Construction /Improvement or renovation of the residential unit of the OFW
- Refinancing of housing loan of the OFW on ‘CURRENT’ status
- Assumption of the house by an OFW from another borrower (either with LandBank or other creditor)
Loan Amount
The OFW can borrow as much as 80% of the loan value of the collateral provided that:
- The Object of Financing will be the principal residence of the borrower
- The title is under the name of the OFW/borrower
OFWs with co-borrowers can apply for 20 years of payment terms and 15 years for OFWs without co-borrowers.
Collateral
The primary collateral will be the Object of Financing meaning the house that you wanted to purchase or renovate. It can also be a separate prime property or other collateral such as a Deposit with Hold-Out.
Interest Rate
The interest rate in LandBank is based on the posted rates at the time of application and is subject to yearly repricing.
Documentary Requirements
For Credit Analysis
OFWs must first visit the LandBank offices near them to have the initial evaluation. Applicants must bring:
- Loan Application Form and attached 1×1 photo
- Employment Contract
For Appraisal
Once the initial evaluation is approved, provide the following documents:
- Photocopy of the Transfer Certificate of Title (TCT) and Condominium Certificate of Transfer (CCT)
- Photocopy of Tax Declaration (land improvements)
- Latest Real Estate Tax Receipts
- Certificate by a Geodetic Engineer
- Lot Plan
- Location and vicinity map
For Construction and renovation
- Photocopy of the Transfer Certificate of Title (TCT) and Condominium Certificate of Transfer (CCT)
Video: Balitang LANDBANK on RMN
Watch this video by LANDBANK Official where OFBank President and CEO Leila C. Martin gives an update on the fully-digital banking services for OVerseas Filipinos, OFWs, and their beneficiaries.
Video: OFW Loan Program ng OWWA at Landbank
This video by Skill Media TV talks about the OFW Loan Program of OWWA and LandBank. Watch the video to learn more about the program and how to be part of it.
Frequently Asked Question
Can the spouse of the OFW be the primary borrower?
No. The primary borrower should be the OFW and the spouse of the OFW can be the co-borrower.
Can I use the money that I loaned in LandBank to pay for my education or training school fees?
Unfortunately, the financial support that LandBank can lend to OFWs is for building or refinancing a business. It can not be used for other purposes.
Can I apply for the Bahay para sa Bagong Bayani (3B) program even if I don’t have a co-borrower?
Yes, you can. OFWs without co-borrowers have a maximum payment term of 15 years.
I’m 60 years old. Am I still eligible for the Bahay para sa Bagong Bayani (3B) program?
OFWs who are 21 years old but not more than 65 years old upon loan maturity can apply for the program.
What is the maximum loanable amount I can borrow under the OFW Reintegration Program?
OFWs can borrow up to 80% of the Total Project Price (TPC) or Php 2 million for a single proprietorship and Php 5 million for a group of OFWs.
What are the projects that LandBank accepts in the OFW Reintegration Program?
The businesses that are feasible, but not limited to, are the following:
- Franchising
- Agri and non-agri production and marketing endeavors
- Construction project
- Rental Services
- Trading business
- Transportation Services
- Contract tie-ups with the top 1,000 corporations
Under the Bahay para sa Bagong Bayani (3B) program, can I borrow the full amount of the property from the bank?
The maximum amount you can borrow is 80% of the loan value of the property you want to purchase or renovate.
I am a former OFW, may I still be eligible for the Bagong Bayani (3B) program?
The Bagong Bayani (3B) program is dedicated to OFWs who have an active contract abroad. If you are not an OFW anymore, you can still apply for a housing loan but not under the 3B program.
Summary
The Overseas Workers Welfare Administration (OWWA) joined hands with the LandBank of the Philippines to further help Overseas Filipino Workers (OFWs) to build their businesses and houses. This program gives them a choice to stay in the country and be with their families and friends.
OFWs have a huge contribution to our economy and with this program, the Philippine government is paying back those sacrifices by giving them the choice to stay and build businesses in our home country.