This program is a joint undertaking of OWWA and National Livelihood Support Fund (NLSF). to address the economic component of the OFW Reintegration Program.
It is meant to further improve access to entrepreneurial development opportunities and credit facilities to OFWs, their families, and organizations.
Enterprises may include:
(a) trading (general merchandise and buy and sell, etc.);
(b) services (repair shops, restaurants, parlors, etc.);
(c) manufacturing (meat/fruit processing, shoes, etc.); and
(d) agri-business (tilapia culure, piggery, poultry, etc.).
The OWWA-NLSF Livelihood Development Program currently has the Collateral Loan Window for individual and group borrowers.
Acceptable Purposes of Loan
1. Working capital – for purchase of merchandise goods and/or raw materials
2. Business assets acquisition (except lot) – for purchase of machines/equipment
3. Business site construction or improvement
Eligible Borrowers
1. Member-OFWs and former member-OFWs
2. Their immediate family members (one family member per one OFW)
3. For married OFWs: spouses or children of legal age
4. For single OFWs: parents or siblings of legal age
5. OWWA LDPO beneficiaries with good repayment records
6. Legally organized groups of OFWs (partnerships / corporations, OFW organizations / associations / cooperatives & Federations)
What are the loan packages and requirements under the OWWA-NLSF Livelihood Development Program
1. Collateral Loan Window
* Individuals or Partnerships with less than five (5) members are entitled to a maximum of P 200,000.00 each member
* Service Fee = Four percent (4%)
* Facilitation Fee = Three percent (3%)
* Total interest rate per annum plus fees not to exceed 16%
Loan Requirements
For Individual Borrowers
1. Proof of OWWA Contribution (passport with POEA-LAC stamp, information sheet from OWWA, POEA-attested Employment Certificate, or E-card)
2. Business Plan / Project Feasibility Study
3. Financial Statement in case of existing business
4. Business permit / license (pre-release condition)
5. Collateral papers (REM or chattel mortgage)
Additional Requirements if availee is an immediate family member:
1. Marriage Contract and consent (for married borrowers)
2. Birth Certificate and authorization (for single OFWs)
For Group Borrowers
1. Proof of OWWA Contribution at least among officers
2. Business Plan
3. Financial Statement in case of existing business
4. Collateral Papers / Ownership Titles
5. Promissory Note for Non-collateral Loan Window
6. Registration with Securities and Exchange Commission (SEC) for partnerships & corporations; Cooperative Development Authority (CDA) for cooperatives; and Department of Labor and Employment (DOLE) for associations.
7. Basic organizational instruments:
- 7.1 Articles of Incorporation for corporations
- 7.2 Ratified group By-Laws or Mutually Agreed Term for partnerships
- 7.3 Articles of Incorporation for cooperatives
- 7.4 Constitution and By-laws for associations
8. Board resolution or group/partnership resolution specifying intent to undertake a group/partnership project or expand a group/partnership project using capital to be borrowed from the OWWA-NLSF-LDPO
How can one apply for a loan under OWWA-NLSF Livelihood Development Program?
Loan applications may be filed at all OWWA Regional Welfare Offices together with the following standard requirements:
1. Accomplished application form (with 2×2 picture)
2. Sketch and routes of residence and/or business site
3. Other requirements if applicable:
* Price quotation
* Bill of materials or building plan
Assets Acceptable as Collateral and Required Documents (For Collateral Loan Window)
1. Real Estate Property
Unmortgaged with no delinquent realty tax and with appraised value of not less than the loanable amount.
2. Chattel / motor vehicles / machines / equipment (brand new up to 3 years)
Source: OWWA
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