Guide on OWWA OFW Loan & Application
OWWA OFW LOAN – The Overseas Workers Welfare Administration has a loan offer for overseas Filipino workers who want to do business.
A lot of Filipinos are working abroad in the pursuit of giving their families a comfortable life in the Philippines. The compensation abroad for a certain job is usually higher and better compared to the compensation provided by most businesses and companies in the country thus many people endure the sacrifice of being away from their loved ones.
Overseas Filipino Workers (OFWs) are considered heroes of the country for bringing in money. The government body that takes care of their welfare is the Overseas Workers Welfare Administration or more popularly called OWWA.
The OWWA offers a loan for OFWs who want to grow or launch a business, the Overseas Filipino Workers – Enterprise Development and Loan Program (OFW-EDLP). Thus, seafarers who want to do so may avail the said offer.
The OWWA OFW loan is ready to assist the boosting of the working capital or funding a fixed asset acquisition for a wide range of businesses. Here are the businesses covered by the offer:
- Franchising business
- Contract tie-up with top 1000 corporations
- Agri- and non-agri production/manufacturing with identified market linkage and raw material sources;
- Construction/rental business;
- Service/trading business;
- Transport service; or
- Any viable project whether existing or new, that should generate a net cash flow sufficient to pay the projected amortization of the loan
Under the loan offer, the loanable amounts depend if the borrower is an individual or a group. Here are the minimum and maximum loanable amounts under the offer:
| Loanable Amount | Individual Loan Borrowers (single proprietorship) | Group Loan Borrowers (partnerships, corporations, cooperatives) |
| Minimum Loanable Amount | Php 100,000.00 | Php 100,000.00 |
| Maximum Loanable Amount | Php 2,000,000.00 | Php 5,000,000.00 |
Under the loan offer, the interest rate is set at 7.5% per annum. Here are the qualifications in applying for the OWWA OFW loan offer:
- active or non-active certified OWWA Member
- has completed the Enhanced Entrepreneurial Development Training (EEDT)
To apply for the offer, you may visit a branch of OWWA nearest to you. The OFWs who are abroad or about to leave may be represented by his/her spouse if married and by parents who are not more than sixty (60) years old or children who are at least eighteen (18) years old.
There are several seaman loans in the Philippines. Some are bank offers while others are those of government institutions.
