Livelihood Development Program for OFW

An article by admin    No Comments

Program Title: Livelihood Development Program for Overseas Filipino Worker (OWWA-NLSF LDPO)
Program Objective: To help OFWs and their families start or sustain their own business through access to credit, capability building, market linkage and other forms of livelihood or entrepreneurial assistance.

Eligible Borrowers:

• All active and former member-OFWs of the Overseas Workers Welfare Administration (OWWA)
• OFWs’ immediate family members (but only one family member per OFW can avail)
  • For married OFWs: spouse or children of legal age
  • For single OFWs:  parents or children of legal age
• Former OWWA LDPO borrowers with good records of repayment

Loan Purposes:

• For short-term operating capital of new or existing business -two-year revolving credit line to be availed of via 30 to 180 days promissory notes.
• For permanent working capital (purchase of stock inventory or cost of franchise – 3 years repayment including one-year grace period on the principal
• For asset acquisition or construction (except for purchase of land – payable in 3 to 5 years including one-year grace period on the principal

Terms and Requirements:

Amount:

• Individual Borrower – maximum of P200.000.00.
• Organized and Registered Group of at least five members -maximum of P1.0 Million.

Interest Rates:

a. NLSF to Program Partners

• Interest:  3% per annum to be amortized with principal
• Service Fee: 1 % per annum to be deducted upon loan release and every start of succeeding year based on outstanding balance

b. Conduits to OFW borrower

• Interest:  9% per annum to be paid on maturity of short term loan or amortized with principal in case of 3-5 year loans
• Service Fee: 2% per annum payable upon loan release and at the start of every year thereafter based on outstanding balance
• Facilitation Fee: 3% one time for the entire term of loan (to cover for CI/BI, appraisal and processing expenses)

Security:   Loans shall be 100% collateralized by any or a combination of the following unencumbered assets/rights: Real estate

• Chattel properties
• Stock inventories
• Receivables
• Insurance/pre-need policies
• Other types of collateral acceptable to the NLSF conduit

Loan Requirements for OFWs

• Proof of OWWA contribution
• Business Plan/Project Feasibility Study
• Business permit/license for on-going projects
• Financial statements in case of existing business Documents to establish borrower’s relationship with the OFW (for beneficiaries)
• Collateral papers/ownership titles, etc.

Contact Details:

Overseas Workers Welfare Administration
7th St. cor. F.B. Harrison St., Pasay City
Tel.(02) 891-7601 to 24
Email: opcenter@owwa.gov.ph / owwa_opcenter@yahoo.com
Web: www.owwa.gov.ph