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How to Apply for a Loan via OWWA

Did you know that as a certified OWWA member, you can apply for a loan to use in your business? With the OFW-EDLP (Enterprise Development and Loan Program), you can! With just three phases of the enterprise development intervention, you are on your way to becoming an entrepreneur.

You will attend the Enhanced Entrepreneurial Development Training (EEDT) composed of lectures and hands-on exercises. These activities will equip you with the knowledge you need to start your business. And thus, you will become eligible to borrow.

OWWA Loan Application Process for OFWs

You will undergo seminars and hands-on trainings to enable you to properly write a business plan. Facilitators will come from OWWA. The first phase is the Program Orientation and Business Appreciation where you as the participant will learn how to start a business, take a personal entrepreneurial assessment and present your business ideas. You will also know more about the loan facility.

The second phase is the Project-specific Training/ Visit to Demo Farms/ Immersion where you will have hands-on experience on the procedures and techniques on the field that you want to work on. If non-farm work is your preferred endeavour, your training will focus on learning management and technical skills.  You will also be given the necessary network techniques to improve your business.

The third phase is the business plan writing seminar. You will incorporate the skills you have learned in the first two phases, to enable you to create the plan. It will then be submitted to the Landbank of the Philippines or Luzon Development Bank for review and approval.

Who are qualified to borrow?

The following are qualified to borrow:

  • Active or non-active OFW and certified OWWA member
  • If OFW is abroad, (and single or widow/er or separated-in-fact)may be represented by:   (1)Parents who are not more than 60 years old by the time the loan matures;  (2) Children who are 18 years old or older when they avail of the loan
  • If OFW is abroad and married, may be represented by spouse
  • For other cases, you can refer to OWWA for qualification

Only one OFW per family can avail of the loan program. Meanwhile, a group of OFWs can form a partnership or cooperative to avail as well. OFWs have up to three (3) years upon return to the Philippines to avail of the loan program. Everyone must have attended the EEDT.

What are the eligible projects?

  • Franchising business
  • Contract tie-up with Top 1000 corporations
  • Agri- and non-agri production/ manufacturing with identified market linkage and raw material sources
  • Construction/ rental business
  • Service/ trading business
  • Transport service
  • Any viable project whether ongoing or new, that can generate an income to be able to pay the loan

How much is the allowed loan amount?

For single ownership the minimum amount that can be borrowed is Php100,000.00 and the maximum is P2M.  For partnerships or cooperatives, the minimum amount is also Php 100,000.00 and the maximum amount is P5M.  The interest rate is 7.5% per annum.

Repayment can be made as a short-term loan, and must be paid within one year. Term loan can also be another option, where the payment should be made up to seven years.

Loan security or collaterals may be:

Torrens certificate of Title, Condominium Certificate of Title, Tax Declaration and plans on mortgageable assets of the borrower

Loan security that are acceptable to banks such as OR/CR for Chattel Mortgage, Lease Rental Contract, Receivables, other Contract Agreements for the execution of the Deed of Assignment, Purchase Order, etc)




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