MANILA, Philippines - The Land Bank of the Philippines (Landbank) has approved an initial P8.3 million in loans for returning overseas Filipino workers (OFWs).
The loan is intended to help returning OFWs start their own businesses in their respective provinces such as Bulacan, Pampanga, Zambales, Batangas, Iloilo, Bacolod, Cebu, Bukidnon, Davao and Pasay.
The amount is part of Landbank’s P1 billion commitment to the government’s P2-billion reintegration loan program of the government jointly implemented by the Overseas Workers Welfare Administration, the Development Bank of the Philippines and Landbank.
The program aims to provide economic opportunities for returning OFWs affected by political crises in the Middle East and other countries seriously stricken by natural calamities.
Among the loans approved by Landbank are a P2 million working capital requirement for an existing music school and another P2-million for a proposed business in agri-vet supplies trading.
“Other approved loans include a P1-million business in Nuat Thai Foot and Body Massage; a P500,000 dental laboratory; P400,000 each for businesses in LPG Gas Trading and a fitness center; P300,000 each for palay trading, and an internet café business; and a total of P1,400,000 for four hog fattening projects,” the Landbank said.
Landbank president and chief executive officer Gilda Pico said that the government also provides project modules that include information on investment requirements and projected monthly income from the different projects.
Under the program, qualified OFWs may borrow from P300,000 to as much as P2 million at 7.5-percent interest per annum which is payable within one year or a maximum term of seven years.
Furthermore, the program also stipulates that Landbank will extend loan up to 80 percent of the total project cost while the remaining 20 percent will be provided by the borrower as equity.
“Eligible projects are those with confirmed market, market contract or service contracts that will generate an income of at least P10,000 every month. Qualified borrowers are OWWA-certified OFWs who can no longer work overseas and who now want to engage in business and need financing assistance for working capital and fixed asset acquisition their preferred business,” Landbank also said.