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OFW Loan of up to 2 Million Pesos: How to Avail Enterprise Development and Loan Program from OWWA

OFW-EDLP, formerly known as OFW-Reintegration Program (ORP), is an enterprise development intervention and loan facility of OWWA, in partnership with Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) intended to support enterprise development among OFWs and their families.

Eligible borrowers:

  • OFW who is a certified OWWA member, active or non-active
  • Has completed Enhanced Entrepreneurial Development Training (EEDT)
  • OFWs working abroad, or about to leave may be presented by the following:
    • If OFW is married, by the legal spouse
    • If OFW is single, widow, widower, or separated-in-fact:
      • Parents not more than sixty (60) years old
      • Children who are at least eighteen (18) years old

Eligible Projects:

  • Franchising business
  • Contract tie-up with top 1000 corporations;
  • Agri and non-agri production/manufacturing
  • Construction/rental business
  • Service/trading business
  • Transport service
  • Any viable project whether existing or new

The enterprise should generate a cash flow sufficient to pay the projected amortization of the loan

Interest Rate: 7.5% per annum for the entire duration of the loan

Loan Purpose: Working Capital and Fixed Asset Acquisition

Project Cost-Sharing: Borrower’s Equity: minimum of 20% of the Total Project Cost (TPC)

Loan Amount: The loan amount shall depend on project needs and amount of equity participation of the borrower:

A. For Individual Loan Borrowers (single proprietorship)

a. Minimum – Php100,000.00
b. Maximum – Php2,000,000.00

B. For Group Loan Borrowers (partnerships, corporations, cooperatives)

a.Minimum- Php100,000.00
b.Maximum – Php5,000,000.00

Loan Repayment:

  • Short-Term- max of one (1) year;
  • Term Loan: based on cash flow but not to exceed 7 years, inclusive of maximum of 2 years grace period

Loan Security/Collateral:

  • Object of financing
  • Mortgageable project assets (machines or equipment) and other assets of the borrower

Availment Process:

  • Interested OFWs submit business plans and are advised to undergo EDT seminar at OWWA regional offices. The seminar will orient them on financial and business management, on various business and income-generating livelihood undertakings, and other pertinent information they need in setting up and sustaining an enterprise
  • Loan applications are endorsed to Land Bank for evaluation and processing based on the criteria set by Land Bank (borrower’s credit worthiness and project viability)
  • Loan evaluation, packaging and approval shall be completed within 45 working days upon receipt of complete loan requirements.

Here are the Steps To Availing an OFW-EDLP Loan:


Verification of OWWA Registration
  • For OFWs still outside the Philippines
    • Email the Welfare Officer of the Embassy that covers your country of work about the OFW Reintegration Program
    • The Welfare Officer will verify your registration in OWWA as an OFW
    • Upon verification, the Welfare Officer in the Embassy will refer  the OFW to an OWWA office in the Philippines.
    • Upon returning to the Philippines, the OFW must visit the OWWA office to get the certification
    • This certification will be presented to Landbank.
  • For OFWs already in the Philippines
    • Visit the nearest OWWA office to verify your eligibility to the program
    • If the OFW is eligible, a certification of membership will be issued, which will be presented to Landbank for assessment.

Enterprise Development Training
  • An eligible OFW will be advised to personally attend the Enterprise Development Training (EDT) conducted by OWWA, DTI and Landbank
  • The OFW must present the certificate of attendance on the EDT to Landbank as part of the requirement.
Preparation of Business Plan and other requirements
  • OWWA certification that the borrower is a bonafide overseas worker and has completed EDT
  • Two valid IDs with signature
  • Duly filled-out Application Form
  • Statement of Assets and Liabilities
  • Barangay Certification of residency
  • Proof of Billing address
  • Sketch of place of residence
  • A business plan on the specific project or business
  • If OFW has existing business prior to loan:
    • Contract Growing Agreement, Purchase Order or Service Contract
    • Certificate of Registration with DTI
    • Mayor’s permit
    • Income tax return (last 3 years)
    • Financial statements (last 3 years, BIR-filed)
    • Latest Interim Financial Statement, if applicable
Submission of Processing Requirements, Review and Inspection
  •  Submit your business plan and other requirements to Landbank for review.
  • Inspection of your business (if already existing) will  be done.
  • Loan evaluation, packaging, and approval shall be completed within 45 working days upon receipt of complete loan requirements.
Approval of Loan
  • If approved, Landbank will release the fund to the OFW.

Watch the video of a successful EDLP beneficiary

OFW Ma. Gina B. Nesperos is a former OFW in Taiwan.
She is now a successful businesswoman in Isulan, Sultan Kudarat.


Posted by OWWA Soccsksargen on Wednesday, 2 August 2017

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