The Overseas Filipino Workers choose to work abroad to give their families a chance to live a better life and to reach their dreams. However, sometimes, life will give you challenges you can’t handle alone. Aside from a declining economy and an increase in inflation, there are also unexpected expenses such as family emergencies and sudden job loss. These kinds of problems require money as a solution, and more often than not, we don’t know where to get and who to ask for the money that we need.
The Overseas Workers Welfare Administration (OWWA) wanted to secure the well-being of all OFWs and because of this, they came up with multiple loan programs that will surely help OFWs in times of need. The OWWA Loans can be used to start your own business or just to overcome your current situation.
Benefits of OWWA Loans
All programs and services of OWWA are tailored to meet the needs of all OFWs and their families. They also offer the lowest rate than commercial lenders to ensure that, OFWs need not worry about interest rates getting out of hand. OWWA loans can be used for starting a business, education, and emergencies.
OWWA Loans
In this article, we will be sharing the list of loan programs, their eligibility, and their terms and conditions. This list will help you in choosing the right program for you and your family. There are also important things to consider in every loan you will take such as:
- Loan amount
- The amount you can loan depends on how much you need and how much can you pay. This means that your business proposal must be detailed and prove that it can generate money for a long period.
- Repayment terms
- The repayment terms vary depending on the type of loan and its length.
Overseas Filipino Workers – Enterprise Development and Loan Program (OFW-EDLP)
With the help of the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines, the OWWA created the Overseas Filipino Workers – Enterprise Development and Loan Program (OFW-EDLP) previously known as the OFW Reintegration Program (ORP).
The OFW-EDLP is a program that allows OFWs to borrow money to start a business to help earn extra money. The business that they are going to build may also be the reason for them to choose to go back to the Philippines for good and be with their families. This is also a good chance to be your own boss and live the life you dream of.
The following businesses are covered by the loan program:
- Franchising Business
- Contract Tie-ups with the Top 1,000 Corporations
- Agricultural and non-agricultural Production/Manufacturing
- Construction Business
- Rental Business
- Service/Trading Business
- Transportation Service
- Other viable projects (existing or new)
Eligibility/Qualifications
OFWs who want to apply for this program must meet the following criteria:
- OWWA member. OFWs must be active members with an updated contribution to OWWA.
- Finish the Enhance Entrepreneurial Development Training (EEDT). The training program equips OFWs with knowledge and skills in terms of finance, business management, and other strategies and skills.
- Proof of financial capacity
If the OFWs are abroad, they can be represented by their family members.
- Married OFW
- Legal spouse
- Single OFW (separated, widow, widower, single parent)
- Parents must not be more than 60 years old
- Children must be at least 18 years old
Loan Amount and Interest Rate
The loan amount that an OFW can borrow depends on how much they need and the equity.
- Individual Loan Borrower (single proprietorship)
- Php 100,000 to Php 2,000,000
- Group Loan Borrower (partnership, corporations, cooperatives)
- Php 100,000 to Php 5,000,000
The loan has a 7.5% interest rate per year and the equity is 20% of the Total Project Cost (TPC). The remaining 80% is the maximum total loan that the OWWA and the DBP can provide.
Helping the Economy Recover through OFW Enterprise Start-Ups (HEROES) Loan Program
The HEROES Loan is a program under the Department of Trade and Industry (DTI)’s Pondo sa Pagbabago at Pag-Asenso (P3) Program. Although this program is not under OWWA, this program helps micro, small, and medium-sized businesses owned by OFWs.
The Small Business Corporation (SB Corporation) started helping OFWs who lost their job due to the Covid-19 pandemic. OFWs apply for a loan worth Php 10,000 to Php 100,000 without interest or collateral. However, they have service fees depending on the loan repayment terms you choose. There are two (2) repayment terms:
- 24 months a with 6% service fee
- 36 months and with an 8% service fee
If you are interested in applying for this program, you must prepare a video presentation of your business proposal to DTI.
Video: OFW Loan Program ng OWWA at Landbank
This video by Skill Media TV talks about the OFW Enterprise Development and Loan Program (OFW-EDP). In this video, you will learn more about the features, projects, and application process of this program.
Frequently Asked Question
Does OWWA offer personal loans?
As of writing, OWWA doesn’t have any program that provides personal loans. However, there are a lot of other programs you can avail of such as scholarship programs, welfare programs, livelihood programs, and many more.
Can I apply for a Calamity Loan?
In case of calamity, OFWs and their families can apply for Calamity Assistance, not Calamity Loan. Calamity Assistance is financial assistance from OWWA and does not require applicants to pay it back.
Does OWWA have a Housing Loan?
Unfortunately, OWWA doesn’t have a Housing Loan. However, different government agencies offer housing loans to OFWs such as the Home Development Mutual Fund (PAGIBIG), the Social Security System (SSS), and private banks.
Who is eligible to apply for the OWWA loan?
All active members of OWWA are welcome to apply. If you are not a member of OWWA, you must become one first and pay a $25 membership fee.
Summary
Working abroad is not easy and starting a business from scratch alone is also not a walk in the park. But if there is a chance to have a better life back in the Philippines, for sure, our OFWs will choose to stay and be with their families.
The OWWA Loan is not just money that the government will hand out to anyone. They will make sure that all applicants are capable and ready to build a business. They will provide all the help and assistance you need to run the business. So if you have a business in mind and your heart and body are ready, grab this chance and become your very own boss.