FAQ on OFW Reintegration Program (OFW-RP)

From Reintegration Program - 5 March 2012 07:23 AM

A. What is the OFW Reintegration Program (OFW RP - 2 Billion Reintegration Fund) ? - The OFW Reintegration Program (OFW-RP) is a special loan program of the Overseas Workers Welfare Administration (OWWA) in partnership with the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines (LandBank). It is intended to support enterprises development among OFWs and their families. B. Who are eligible under the OFW-RP? - OFWs who have complied with the following requirements are eligible under the OFW-RP; (1) Active or former members of OWWA; and (2) Completed the Entrepreneurial Development Training (EDT) conducted by NRCO and OWWA RWOs in cooperation with the Department of Trade and Industry / Philippine Trade Training Center (PTTC) / Bureau of Micro, Small and Medium Enterprise Development (BSMED). C. What are the eligible projects under the OFW-RP? - Viable projects that will generate a net monthly income of not less that PHP 10,000.00 are eligible under OFW-RP. D. How much is the loanable amount? - The loanable amount is from a minimum of PHP 300,000.00 to a maximum amount of PHP 2 million. E. What is the interest rate? - The interest rate is 7.5% per annum, fixed for the term of the loan based on diminishing balance. F. What are the schedules of loan repayment and loan maturity? - Monthly, quarterly, or annual payment depending on the project cash flow. For short term loan, maturity is for a maximum of one (1) year. For long term loan, the maturity is up to seven (7) years inclusive of two (2) year grace period on principal. G. What is the project cost sharing of the OFW borrower? - The borrower's equity should be 20% of the total project cost. Maximum loan is 80% of the total project cost. H. What will the banks require for loan security purposes? - Banks will require the borrower to submit proof of confirmed market purchase / service order or a list of mortgageable assets, if any, for loan security purposes. I. What are the basic documentary requirements that may be required by the bank from the borrower? The following documentary requirements maybe required by the bank from the borrower: 1. Bio-data of applicant; 2. OWWA certification from OWWA-RWOs that the borrower is/was a bonafide member of OWWA and has completed the EDT at the NRCO or at OWWA-RWOs; 3. Business plan; 4. Statement of Assets and Liabilities a. For Start-Up Business a.1. Certificate of Registration from DTI a.2. Mayor's permit b. For Existing Business b.1. Certificate of Registration from DTI b.2. Mayor's permit b.3. Income Tax Return, if applicable, (for the last 3 years) b.4. Financial Statements, if applicable, (last 3 years, BIR filed) b.5. Latest Interim Financial Statement J. Where does an interested OFW borrower proceed to avail of the OFW-RP? - Interested OFW borrowers should proceed first to the nearest OWWA-Regional Welfare Offices to attend orientation on the program and for certification of their OWWA membership and Entrepreneurial Development Training (EDT) completed.