OFWs planning to start a business and become an entrepreneur should know how the business loan offered by OWWA can help them.
Many Overseas Filipino Workers believed that the country’s economy is continuously growing. That’s why they plan to start a business in the country. Good news for those OFWs who don’t have enough savings to finance a starting up business. The OWWA has established a reintegration program that aims to offer business loan. This isn’t only for startup business but also for existing enterprise.
The goal of the reintegration program of OWWA is to assist former and current member OFWs who want to engage in any business venture in the Philippines. The program is funded not only by OWWA but also other partner institutions including Development Bank of the Philippines, Land Bank of the Philippines and National Reintegration Center.
Read Also: OWWA Benefits for OFWs
OFWs can borrow a minimum of PHP300,000.00 and maximum of PHP 2 Million. The interest rate is 7.5% per annum.
How to Apply for OWWA Business Loan
If you want to apply for business loan from OWWA, you should complete the following requirements:
- Feasibility of the proposed business and submit it to any DBP or LBP branch nearest to your place
- The average income of the proposed business should be PHP 10,000.00 a month
- Mayor’s permit
- Certificate of registration issued by the DTI
- OWWA information sheet
- Entrepreneurial Development Training Certificate
OWWA Business Loan Guideline
- Eligible borrowers are those OWWA members
- The loan fund should be used solely for the proposed business. It can be used for acquiring fixed asset or as a working capital.
- The program follows equity which means that the business project is cost-sharing. The OFW-borrower will shoulder the 20% of the total cost of the project and the 80% will be shouldered by the TPC.
- The business loan can be short-term or long-term. For short term loan, the borrower will pay it within a year. The payment for long-term depends on the cash flow of the business, but should not exceed to seven years.
- The loan provider may require a loan collateral such as PO of confirmed clients, equipment and, machines. Assets like land titles can also be used as collateral.
If the OFW-borrower will use the loan fund for expanding an existing business, the borrower is required to submit the following documents:
- Mayor’s permit
- Certificate of Registration issued by the DTI
- Certificate of Income Tax Return for the concluding 3 years
- Financial Statements for the previous years and submitted to BIR
- Statement of Assets and Liabilities of the Business
- Temporary financial statement
Any OFW who plans to apply for OWWA business loan is required to attend the Entrepreneurial Development Training held at OWWA-Regional Welfare Offices throughout the country. This will help applicants to learn more about financial management necessary to succeed in the business.