OFW loan in OWWA
Entrepreneurship is one of the driving factors in the development of the state economy. And while many Filipinos are looking for prospects and opportunities abroad, organizations such as OWWA are committed to giving citizens opportunities to prosper in their homeland. For example, using a loan for business development.
Table of Contents OFW loan in OWWA
What is OWWA and what does it offer?
OWWA or, more precisely, Overseas Workers Welfare Administration is an agency created to support Filipinos who have left their homeland for labor migration (Overseas Filipino Workers or OFWs). It’s a huge organization the mission of which is to provide any help for labor migrants and their families at all stages. Many of the organization’s programs are also aimed at the reintegration of Filipino citizens.
OWWA provides psychological and social assistance. Also, it gives educational programs for training and continuing education, focuses on insurance services and provides an OWWA loan.
See also: Places to get a 10,000 PHP emergency loan
The goal of the loan offer for labor migrants
OWWA provides a loan for OFW as part of an offer of labor migration alternatives for Filipinos. It was created with the support of the Land Bank of the Philippines, as a partner and Development Bank of the Philippines.
According to the organizers’ idea, this loan promotes entrepreneurial businesses in various sectors. This enables overseas workers with their families to increase their incomes, contribute to the economic development of the state and improve the well-being of citizens.
Please note that this product is designed for business development only. If you are interested in a housing loan in OWWA or a car loan, we recommend contacting alternative institutions where special programs have been created for this.
Who can claim for OFW personal loan in OWWA
The offer is provided only to those related to OFWs. So, the target clients are:
- OFW
- Owners of a certificate of membership in OWWA in the form of a certificate
- Those who have a certificate from the course of Enhanced Entrepreneurial Development Training.
Among other things, the client may be represented by someone from the OFW family, at the time the person is located abroad. Such a person can be:
- A child of OFW, with a remark that at the time of issuing a loan he/she should be over 18 years old
- Parents, if they won’t reach the age of 60 for the loan repayment period
- If OFW is married, the spouse can be a representative.
Program rules state that a loan for OFW can only be obtained once per family. If we are talking about the OFW group, this should be a business partnership, a company, an organization that: has been successfully operating on the market for 3 years or longer
All company officers are OFWs who have confirmed their membership in OWWA and have passed the EEDT.
See also: The guide about personal loan in the Philippines
OWWA OFW loan business opportunities
The loan was created to support Philippine entrepreneurs who want to conduct legitimate business in their home state. Consider the parameters of the program.
How much can I loan in OWWA for my business
OWWA issues a loan for OFW for a short term, i.e. up to 1 year as well as for more continuous term. However, the repayment period should not exceed 7 years, taking into account a maximum of 48 months of the grace period. The following conditions should also be considered:
- interest rate is 7.5% per year
- minimum required business income – at least 10.000 PHP
- The organization offers an amount from 100.000 PHP to 2.000.000 PHP for private entrepreneurs. If a group of applicants or a company wants to take a loan, then the available amount varies up to 5.000.000 PHP.
What types of business are supported by the program
However, it should be borne in mind that this program has rather stringent requirements for business projects. The cash flow generated should be sufficient to pay the projected depreciation. Eligible sectors include:
- Agribusiness
- Commercial concession (franchising)
- Rent and leasing
- Transport services
- Service sector
- Market trading
A production that already has market ties and sources of raw materials. Simply put, any business that has legal grounds and evidence of promise.
See also: Online Cash Loans in the Philippines
How can I claim it?
In order to qualify for this program, you should follow a few steps. The first, of course, is familiarization with the rules and conditions of the loan application. All basic demands for those wishing to receive this type of loan are described below.
Also, obtaining a loan from OWWA requires passing additional procedures:
- training on this credit line at one of the OWWA centers
- obtaining an EDT certificate
- waiting for a decision within 45 days
The better the applicant meets the demands, the easier it is to get a loan. Also, in any of the offices of the organization, you will receive detailed consultation on how to apply loan in OWWA.
Important about OWWA loan requirement
Like any other organization that issues a loan, OWWA presents some requirements to a potential borrower. This is quite essential because the organization’s goal is to support OFWs and enable them to grow their businesses legally. Therefore, the applicant will have to convince the company that he or she not only needs this money but is also ready to fulfill debt obligations. Therefore, it’s necessary to consider the latter OFW loan in OWWA requirements. Applicant must have:
- OWWA membership
- certificate of studies at the EDT School of Entrepreneurship
- Income tax return for a period of not less than 36 months
- Financial Reports for BIR for 36 months
- Recent Interim Financial Report
- permission
- biographical data
- official IDs from the government in 2 forms
- if the borrower has a corporation, he/she should also provide SEC registration certificate
Besides, the borrower’s relative, whether spouse, one of the adult children or a parent must have SPA or Special Power of Attorney. It's necessary for cases when a family member has to make transactions on behalf of the borrower if he/she is far away at the moment. Each applicant must comply with these documental OFW loan requirements in OWWA.
See also: All about credit score in the Philippines
OWWA certificate of membership is must-have
One of the most basic OWWA loan requirements for participating in this program is to be an overseas worker who has a contract or an official agreement with the employer. An equally important factor is to have an OWWA ID. Therefore, OWWA loan for ex OFW, or anyone else, is not provided here.
Joining this organization is not so difficult. Any working Filipino can do this in two ways:
- based on contract at the POEA
- by voluntarily registering at one of the OWWA offices
You must also contribute no more than 25 USD. Membership in this organization provides many privileges. This is an opportunity to participate in educational programs and to get insurance, assistance, counseling, psychological and legal support.
Material conditions for obtaining OWWA personal loan
To issue a loan for business development, and this is a large amount, OWWA and a partner of LandBank will be interested in the applicant’s material condition. This means that if you are interested in obtaining an OFW loan in OWWA, you should take care of the deposit. An applicant may provide some of his/her property as a guarantee that the organization will not suffer losses in case of default. Therefore, the program doesn't imply an OWWA loan without collateral. It could be:
- Land plot
- Car
- The presence of savings in the bank
- Equipment
- Machinery
- Lease or sublease agreement where the business is located
Also, the rules allow the person to specify a guarantor with a good credit reputation and provide such documents as an act of buying goods for a manufacturing process or purchase order.
See also: 11 Best Alternatives to a Payday Loan
Final part
OWWA offers many diverse programs to provide any help for Filipinos working abroad and their families. One of them is an OWWA of loan for the promotion of the business sector. According to this program, any overseas Filipino worker who works on an official basis and who is a member of OWWA can apply for a loan:
- in the amount of 100.000 PHP to 5.000.000 PHP
- at an annual interest rate of 7.2%
- for up to 5 years
For this, the applicant must provide a package of required documents, apply and wait for a decision up to 45 days. The more the applicant matches the program, the faster he/she will get a loan and with a higher probability. However, the option of OWWA program for ex OFW is not available. Plus, do not forget that the loan requires material guarantees in the form of collateral.
