OWWA Loan – What You Need to Know

A Glimpse of What You Need to Know about OWWA Loan

The Overseas Workers Welfare Association or OWWA is a membership
institution that conducts programs and offers services for overseas Filipino
workers or OFW. Among the services the institution offers is applying for a
loan facility. This gives you an opportunity to start a new life sans the burden
imposed by commercial financial institutions.

If you plan to avail of OWWA loan, here’s what you need to know about this
facility before applying for one:

Quick Facts about OWWA loan

Basis of OWWA Loan Program
The OWWA loan is in accordance to the P2-billion reintegration program of the
government to help OFWs not only find but also build sustainable businesses to
support them and their families. This way, they won’t have to go back abroad to
make a living and generate sustainable income for the family.

Proposed business must be in line with any of the following:

 Health care
 Agri-business
 Tourism
 Franchising
 Education
 Construction or rental business
 Transport service
 Service or trading
Likewise, the purpose of the loan must be for working capital and fixed asset
acquisition only and not for personal use.

The OWWA Loan Program

OWWA allows every overseas worker P100,000.00 to P2,000,000.00 for
individual borrowers and up to P5,000,000.00 for group borrowers. You have an
option to avail of short-term loan, which lasts for 12 months, or long-term loans
shall not exceed seven years. For long-term loans, a two-year maximum grace
period is included on the principal.

Interest rate for both short- and long-term loans is pegged at 7.5% per annum.

Basic Requirements
Only OFW applicants certified and endorsed by OWWA can avail of the loan
program, which will be coursed through by Land Bank. To be certified, the
applicant must comply with the basic requirements:

 Overseas worker applying for the OWWA loan facility must provide a
certification from OWWA to prove his/her status as bona fide OFW.
 The applicant must attend and finish the Enterprise Development Training.
 Submit proposed business together with purchase order and service contract or
contract growing agreement.
 Applicant must likewise present copies of, but not limited to the following:
 Bio-data of the applicant
 Certificate of Registration with DTI
 Mayor’s permit where the business is located
 Income tax return or ITR for at least three years
 BIR-filed financial statements for at least three years, if applicable
 Statement of assets and liabilities
 Interim financial statements, if available
 Loan security or collateral, which could be the object of financing or
mortgageable assets like project assets or other assets of the borrowers
Where to Submit
Once you have the necessary documents, submit the requirements in OWWA
Main Office located at F.B. Harrison St., Pasay, Metro Manila. You can also
submit the requirements in the nearest regional office near your area. OWWA
regional offices are located in various cities in Luzon, Visayas, and Mindanao.
Loan evaluation, processing, and approval will be completed within 45 days
from submission of complete requirements.

http://www.ofwloans.ph/what-you-need-to-know-about-owwa-loan/
Find Out If You Are an Eligible Borrower for
OWWA Loan
At this point, you know what an OWWA Loan is, how it aims to help Filipino
migrant workers build a sustainable life in the Philippines, and the requirements
you need to accomplish to process your loan application.

Here’s the next question: Are you an eligible borrower?

Apparently, being a migrant worker is not enough so you could avail of the
benefits of OWWA Loan. Apart from the requirements you need to submit, the
borrower itself – and that means you – must also fulfill the requirements
provided for by OWWA.

How will you know if you are an eligible

borrower? You must

be a certified OWWA member, whether active or non-active. You must be
able to prove such by presenting POEA-attested employment certificate,
passport with POEA-LAC stamp, or your E-card. Consequently, you must
 also complete the Enterprise Development Training (EDT) before you can
be allowed to avail of this loan facility. You can learn more about EDT here.
Let’s say you want to apply for OWWA Loan, but you are working abroad. The
good news is you can still apply as long as you are represented by any of the
following:

 If Married – Your legal spouse.

 If Single, Separated-in-Fact, or Widower – Your parents who are not older
than 60 years old upon maturity of the loan or your child/ren at least 18 years at
the time of availment of OWWA loan.
Another cause of concern is the age of the borrower. If you or your attorney-in-
fact(a person you authorized to perform business-related transactions in your
behalf by virtue of a power of attorney) will be more than 60 years old at the
time of loan maturity, you will be required to have a co-maker. Your co-
maker can be yourchildren at least 18 years of age or your sibling.
Keep in mind that if you plan to start your business venture, you can avail of
OWWA Loan within three years from your date of arrival in the Philippines.
The three-year rule will not apply if you have an ongoing business already.
With these requirements, are you an eligible borrower? Make sure you are to
make the processing of your loan easier and hassle-free.

http://www.ofwloans.ph/find-out-if-you-are-an-eligible-borrower-for-owwa-
loan/
Enterprise Development Training: A
Requirement You Need to Comply when
Applying for OWWA Loan
One of the projects offered by the Overseas Welfare Workers Association or
OWWA is the Enterprise Development and Loan Program, popularly known as
OWWA Loan. Its primary aim is to aid Filipino migrant workers to go back and
stay in the Philippines for good through business enterprise development.

Here’s the catch: if you wish to avail of the OWWA loan, you need to undergo
Enterprise Development Training or EDT. In fact, it is one of the major
requirements you need to comply with before your loan application is
processed. Upon submission of your loan application, you need to show proof
that you finished the course.

EDT has three phases, which you will learn more in detail
below.
Phase 1: Program Orientation and Business Appreciation
In this phase, you will be introduced to the concept of business, understanding a
business venture, and the qualities you need to posses to help you in running
and maintaining your chosen field. There will also be Personal Entrepreneurial
Assessment to help you identify your strengths and possible weaknesses in
handling a business.

At this phase, you will also be asked to present your business ideas and draft
your business plan. Experts will be looking into your business plans, so pay
attention as to the areas of improvement.

In case you have questions on the OWWA loan facility, this is the perfect phase
to raise them so you will have a better understanding.
Then, you can move on to the next phase.

Phase 2: Project-Specific Training / Visit to Demo Farms / Immersion

Your chosen business enterprise can be divided into two categories: AGRI and
NON-AGRI.

If your proposed business is in the agricultural sector, you will have project-
specific trainings and hands-on experience with relevant government agencies
such as Department of Agriculture or Department of Agrarian Reform. You will
also have social preparations sessions where you will attend trainings on
bookkeeping or record keeping, and other skills training such as food handling,
marketing strategies, and developing production skills.
If you prefer a business venture that is non-agricultural, OWWA will refer you
to relevant agencies such as TESDA and DTI. You will be taught management
and technical skills applicable to your proposed business, plus networking
techniques to help your business grow. You will likewise be given a Basic
Productivity Toolbox as part of the Social Preparation Intervention.
After this stage, you will move on to the last phase.

Phase 3: Business Plan Writing Seminar

You already have a business plan at the start of your EDT. At this stage, you
will be asked to incorporate all your learnings from phases 1 and 2 into your
business plan. Land Bank will give you basic knowledge on how to prepare a
business plan to boost your chances of approval.

Once you completed the three phases of Enterprise Development Training, you
will be given a Certificate of Attendance to prove that you went through the
process. Then, complete the other requirements needed to process your OWWA
Loan application. Thereafter, you will be endorsed to Land Bank, where a 40-
day verification period will run as part of the application process.

http://www.ofwloans.ph/enterprise-development-training-a-requirement-you-
need-to-comply-when-applying-for-owwa-loan/
 Prepare These Requirements When You
Apply for OWWA Loan
The OWWA Loan facility provides a promising venue for Overseas Filipino
Workers to start a new life and provide a sustainable future for their families
without leaving the country. Apparently, there are requirements you need to
comply with to make sure your application for OWWA Loan is
approved.

Here is a detailed list of requirements you need to submit if you are

an INDIVIDUAL BORROWER:
 Proof that you are a bona fide OWWA member.
 Proof of OWWA contribution such as POEA-attested employment certificate,
your passport with POEA-LAC stamp, E-card, or OWWA Information Sheet.
 Business Plan or Feasibility Study of your proposed business. Take note that
your business must be among the eligible projects allowed by OWWA.
 Two (2) valid IDs with signature.
 Barangay Certification as proof of residency based on your given address.
 Proof of billing address.
 Sketch of your place of residence.
 Income Tax Return (ITR) for at least three years.
 Statement of Assets and Liabilities.
 Mayor’s Permit where the business is/will be located.
 Marriage Certificate for married borrowers or Birth Certificate for single
availee.
 Collateral / Security documents, whether real estate or chattel mortgage.
 If the business is already existing: BIR-filed financial statements for at least
three years, latest interim financial statements, and Certificate of Registration
with the Department of Trade and Industry (DTI).
You must also complete the Enterprise Development Training, which will be
discussed further in a separate post.

The OWWA also allows GROUP BORROWERS such as cooperatives,

partnerships, associations, or corporations to avail of this loan facility. If you are
borrowing as a group, here are the requirements you need to submit:
 Proof of OWWA contribution, at least that of the officers.
 Business Plan or Feasibility study of the proposed business.
 Security / Collateral documents, which will be discussed further below.
 Board or Partnership Resolution signifying intent to undertake or expand a
business / project with the help of OWWA loan facility.
For Corporations:
 Proof of Registration with the Securities and Exchange Commission (SEC)
 Articles of Incorporation
 Ratified By-Laws
For Partnerships:
 Proof of Registration with the Securities and Exchange Commission (SEC)
 Mutually Agreed Terms
For Cooperatives
 Proof of Cooperative Development Authority
 Articles of Incorporation
For Associations
 Proof of Registration with Department of Labor and Employment
 Constitution
 By-Laws
Keep in mind that the Loan Security or Collateral shall be any of the following:

 Torrens Certificate Title (TCT) Condominium Certificate of Title (CCT), Tax

Declaration, and other pertinent documents related to planned mortgageable
assets.
 OR/CR for Chattel Mortgage
 Lease Rental Contract
 Receivables
 Other contract agreements related to the execution of Deed of Assignment or
Purchase Order.
It is imperative that you comply with all the requirements so that your loan
application will be processed as soon as possible. This way, processing of the
loan and release of funds will be faster, thereby allowing you to start sooner in
your business venture.

http://www.ofwloans.ph/prepare-these-requirements-when-you-apply-for-
owwa-loan/
Applying for OWWA Loan: Practical
Difficulties, Pitfalls, and Everything in
Between
P2-billion Reintegration Program for OFWs to help them start a good life in the
Philippines. Sounds good, right? After all, the idea is you can settle and grow
old here in the Philippines without having to worry about your financial
situation. You know what they say, if it’s too good to be true, then most likely
it’s not true.

Surely, OWWA means well. They wouldn’t offer this kind of services to
Overseas Filipino Workers if their intention is not to help you, bagong
bayani. Unfortunately, applying for OWWA Loan is not as easy as it seems.
Check out these pitfalls and difficulties when applying for an OWWA Loan and
what you can do about it:

1) “The loan application requirements are hard to comply with.”

OWWA Loan is all about business loan, which means they will need all the
necessary documents to prove that you are really opening a business. Therefore,
you will need documents like Mayor’s Permit, Certificate of Registration with
DTI, and Barangay Clearance among many others. This can be tedious and
time-consuming to prepare since government offices won’t release it overnight.

Whether or not you want to apply for an OWWA Loan, make sure you secure
the necessary permits and business documents to legitimize your business. This
way, the documents are readily available in case you decide to apply for
additional working capital. This will speed up the loan application process as
well since the documents are complete.

Here is a detailed list of requirements needed when applying for OWWA Loan.
2) “I’m still working overseas.”
One of the common questions we get from OFWs is if they can apply for a loan
eve if they are still working abroad. The answer is yes, although this can be a
tedious process.
 OWWA Loan is offered to active OWWA members who were also certified as
OFW. You need to get that certification first since you will present it to
Landbank as part of the requirements.

In case you’re still abroad, here’s what you can do to verify your OFW status:

 Contact the Welfare Officer of the Philippine Embassy in the country where you
are working. The Welfare Officer will verify your registration to OWWA as
OFW.
 Once verified, the Welfare Officer will refer you to an OWWA Office in the
Philippines.
 On your return to the Philippines, make sure to visit the said OWWA Office to
get the certification.
 Present the OFW Certification to Landbank together with the other
requirements.
You can also execute a Special Power of Attorney authorizing your spouse or
any immediate family member who are of legal age to act and transact on your
behalf in case you need to go back to your work abroad.

3) “Do I still have to attend the Enterprise Development Training (EDT)?”

The answer is yes. In fact, a Certificate of Attendance as proof that you went
through EDT is a necessary requirement when applying for a loan. Through
EDT, you will be taught various strategies and techniques in managing,
sustaining, and dealing with issues in your chosen business. Immersion program
is also part of the training to give you an idea and experience on how to handle
the business.

Check with the OWWA Office near you regarding the schedule for Enterprise
Development Training since it will depend on the regional office. The duration
of the training may also last for minimum of one day due to the immersion.

Check this post to learn more about Enterprise Development Training.

4) “I don’t have any property under my name.”
Another common issue raised by many OFWs is the lack of property or any
other asset under their name, which they can use as a collateral for their loan.
Collateral is an important aspect of OWWA Loan because at the end of the day,
OWWA wants assurance that they will be paid. Even if the OWWA Loan is
 principally a non-collateral loan, you need to present mortgageable assets for
loan security purposes.

What’s your remedy?

Property under your name is just one of the many assets you can present as
collateral. Aside from property (as proven by a TCT or CCT), you can also use
the following types of assets:

 OR/CR of vehicle (chattel mortgage)

 Receivables
 Lease Rental Contract (which also proves that the business is/will be
operational)
 Other contract agreements like Purchase Order or Deed of Assignment.
You may also apply with a co-borrower, preferably in good credit standing, to
help facilitate the loan process.

5) “I need at least a million, but OWWA said they can only lend me less
than that.”
You surely want a higher amount when applying for a loan. After all, you can
use the excess funds to other equally important expenses. Unfortunately, that
won’t happen, especially if you can’t prove your capacity to pay.

Keep in mind that the P2-billion OFW Reintegration Program is a project

between OWWA and Landbank. This means Landbank is also in charge of
processing every loan application, which also means they will look closely at
every loan applicant to determine whether s/he is worthy of credit. There are
several factors to consider such as credit history and collateral among others.
Your business plan will also be closely scrutinized to ensure viability and
sustainability of your proposed business.

Even if you are granted a loan, there is no assurance that you will be granted as
much as P2 million.

6) “I need money to buy/construct a house.”

OWWA Loan is specifically for business purposes. This is why you are required
to go through all the training and immersion program to help you prepare for the
entrepreneurial life. Once OWWA sees that the purpose of your loan is for
personal use, say construction or acquisition of property, then outright rejection
is possible.

Still, don’t look at OWWA Loan negatively. This type of loan has benefits since
the facility is specifically offered for Overseas Filipino Workers. Nonetheless,
don’t limit yourself with OWWA Loan. There are many lenders who are willing
to make loan processing easier and more convenient for you.

http://www.ofwloans.ph/applying-for-owwa-loan-practical-difficulties-pitfalls-and-everything-in-
between/
Other Helpful Websites:

http://www.owwabenefits.com/owwa-philippines-loan-requirements/