OWWA or the Overseas Workers Welfare Administration offers loans to qualified OFWs or Overseas Filipino Workers by partnering with Land Bank of the Philippines. Individuals looking to start a business, invest in enterprise opportunities and cater to other needs can apply as soon as they complete all the requirements.
OWWA loans are generally available to OFWs who are certified and endorsed by OWWA to Land Bank. Applicants need to submit a business plan to show the viability of the business opportunity they intend to enter. Viable projects are described as those with verified purchase order or market order, showing at P10,000 net monthly income. OFWs can loan to acquire fixed assets or come up with the capital needed to start the business or franchise. There are short term loans and long term loans available. Short term loans last only for 12 months while long term loans will be based on cash flow but should not exceed 7 years. The long term period will include a 2-year maximum grace period on the principal.
Interest rate for both short and long term loans are 7.5% per annum. The amount allowed to be loaned will depend on the business proposal and OFW’s computed capacity to pay. Loan amount can range anywhere between P300,000 and P2,000,000. As for project cost sharing, the loan will have a maximum of 80% of total project cost while borrower’s equity has a minimum of 20% of the total project cost.
Requirements to Process OWWA Loan Application
- The applicant must provide OWWA certification that proves status as a bona fide overseas Filipino worker.
- The applicant should also show that he has finished the Enterprise Development Training. OFW’s credit history will be helpful in determining the maximum loan amount and terms of payment.
- The applicant needs to submit the specific project intended to generate income for him and his family, together with the purchase order, contract growing agreement or service contract.
- Other requirements include Certificate of Registration with the Department of Trade and Industry or DTI, bio-data of the OFW, Mayor’s Permit, BIR-filed financial statements for the past 3 years if applicable, income tax return or ITR for the 3 three years, Statement of Assets and Liabilities and the latest interim financial statement if available.
The requirements and specific business plans need to be submitted to any OWWA regional office, preferably located in the same region where the applicant resides. No collateral is required to get an OWWA loan.
Basis of the Program
The OWWA loan opportunity for OFWs is based on the P2-billion reintegration program which aims to help overseas workers find and build sustainable businesses that will support them and their families. Also, the proliferation of businesses in the community will lead to the creation of more jobs and infuse additional income to economy. Ultimately, OFWs may no longer need to keep returning abroad to generate sufficient income to support their family. The type of business to start will depend on the applicant, although many are looking into agriculture, farming and service-related enterprises like dental clinics and restaurants.
OWWA Locations in the Philippines
- Baguio City
- Tuguegarao, Cagayan
- Calamba, Laguna
- San Fernando, La Union
- San Fernando, Pampanga
- Malate, Manila
- Legazpi City
- Iloilo City
- Cebu City
- Tacloban City
- Zamboanga City
- Cagayan de Oro City
- Davao City
- Koronadal City
- Butuan City
- Cotabato City
OWWA Locations Overseas
UNITED ARAB EMIRATES
UNITED KINGDOM and IRELAND
Commonly Asked Questions