How an OFW can avail Loan from OWWA OFW-EDLP Program

An OFW who is a certified OWWA Member, active or non-active, and has completed the Enhanced Entrepreneurial Development Training (EEDT) are qualified to avail the program.

Formerly known as OFW-Reintegration Program (ORP), OFW-EDLP 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.

How to Avail:

• Visit the OWWA Regional Welfare Office that covers the permanent address of the OFW and undergo orientation/eligibility screening and processing/necessary training
• Secure the required OWWA certification for submission to LANDBANK
• Visit the LANDBANK Lending Center/Lending Unit nearest to your place of residence or business for more information and evaluation of project proposal.

• Eligible Projects
  • 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 (or resulting into debt service ratio of at least 1).
• Eligible Loan Purposes
  • Working Capital; or
  • Fixed  Asses Acquisition. 
• Project Cost Sharing
  • Borrower’s Equity – Minumum of 20% of the Total Project Cost (TPC).
  • Loan – Maximum of 80% of the TPC.
• Loan Amount – The loan amount shall depend on project needs and amount of equity participation of the borrower:
  • For Individual Loan Borrowers (single proprietorship)
    • Minimum – Php 100,000.00
    • Maximum – Php 2,000,000.00
  • Group Loan Borrowers (partnerships, corporations, cooperatives)
    • Minimum- Php 100,000.00
    • Maximum – Php 5,000,000.00
• Interest Rate: 7.5% per annum for the entire duration of the loan
• 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
• Mortgage able project assets (machines or equipment) and other assets of the borrower

Who are qualified for the Loan?

• OFWs who are abroad or are about to leave the Philippines may be represented by the following:
  • If the OFW is single, widow or widower; or separated-in-fact, by:
    • Parents who are not more than sixty (60) years old upon maturity of load; or 
    • Children who are at least eighteen (18) years old at the time of loan availment.
  • If the OFW is married, by the legal spouse.
    • OFWs who are currently employed overseas shall execute a Special Power of Attorney (SPA) duly authenticated by the appropriate Philippine Embassy / Consulate. OFWs who are about to leave the Philippines may execute a Special Power of Attorney (SPA) prior to their departure from the Philippines. The Attorney-in-fact shall transact with LBP or DBP on behalf of the borrowing OFW by virtue of the SPA.
• If the OFW or his / her Attorney-in-fact is more than 60 years old upon loan maturity, a co-maker of the loan shall be required. The co-maker may be the sibling or the children (of legal age) of the borrowing OFW with the capacity to pay and whose age should not be more than 60 years old upon loan maturity.
• OFW returnees may avail of the loan program within three (3) years from the date of arrival to the Philippines, except in cases where the OFW-applicant has an on-going business prior to the time of application.
• Only one (1) OFW per family, within the first degree of consanguinity or affinity (parent, spouse, child) shall be eligible to apply under the program.
• Group of OFWs who formed themselves into a business entity, either as partnerships/stockholders /directors/officers /members are OFWs who have been certified as OWWA Members and have completed the EEDT