Since it launched in 1977, the Overseas Workers Welfare Administration (OWWA), with its offices in 27 countries, has been all about lending a hand to overseas Filipino workers (OFWs)—land-based or sea-based—through their numerous programs and services. They also offer loans meant to help OFWs establish businesses and generate more income. After all, being an OFW or a seafarer isn’t forever and being prepared for such a time when they would have to stop working or return to the country is also yet another form of being responsible.
Also Read: What are the OWWA Social Benefits?
As an agency created to support the OFWs and their families, OWWA encourages entrepreneurship among its members by offering funding through safe and reliable loan programs. These loans were meant to give back and help OFWs have a steady income and build opportunities for their community, if and when they decide to return to the country for good. So, if you are an OWWA member with a business project that needs short-term or long-term funding, then read until the end of this guide to learn more about the OWWA loans for OFWs and seafarers.
List of OWWA Loans for OFWs and Seafarers
OWWA has always been about providing aid to our modern-day heroes, the OFWs. One of the ways they do so is by offering a loan program for their members, regardless if they work on land or at sea. The OWWA loan program is based on the P2-billion reintegration initiative, which comes as part of the perks of being an OWWA member.
Some of the available OWWA loans for OFWs and seafarers include:
1. Overseas Filipino Workers – Enterprise Development and Loan Program (OFW-EDLP)
The Overseas Filipino Workers – Enterprise Development and Loan Program (OFW-EDLP), is an OWWA loan program formerly known as the OFW-Reintegration Program (ORP). It is a collaborative enterprise development intervention program and a loan facility managed by OWWA, along with the Landbank of the Philippines (LBP), and the Development Bank of the Philippines (DBP). It was designed to help OFWs with funds that will provide them with some leverage and guidance on starting their own businesses in the Philippines.
Benefits
The OWWA-EDLP loan program offers the following benefits:
- Credit ranging from Php 100,000.00 to Php 2,000,000.00 (for single proprietors) and Php 100,000.00 to Php 5,000,000.00 (for group loans) to cover for the business’ working capital or fixed asset acquisition.
- Short- and long-term loan repayment options
- Equity amounting to 20% of the Total Project Cost (TPC)
- Fixed interest rate of 7.5% per annum
- Two-year grace period for repayment
It is also packaged with the Enhanced Entrepreneurial Development Training (EEDT) – a three-part mandatory training program that helps OFWs learn about finance, business management, and other business-oriented topics like business plan writing to help your business project grow.
The program’s loanable amount can be used for businesses related to:
- Franchising
- Rental
- Construction
- Service/Trading
- Transportation
- Agricultural and non-agricultural production
- Contract tie-up with the country’s top 1000 corporations
- Other new or existing viable projects
Qualifications
Now that you know about what OFW-EDLP is all about and you are thinking of availing the provisions of the loan program, then you first need to check if you are even eligible.
Listed below are the criteria that one must meet to even qualify to apply for this OWWA loan:
- OWWA-certified OFWs (active or inactive)
- Have completed the Enhanced Entrepreneurial Development Training (EEDT)
If the OFW is abroad:
- If the OFW is married: He/she may be represented by his/her spouse.
- If the OFW is single, separated, or widowed: He/she may be represented by his/her parents who are not more than 60 years old, or by his/her children who are at least 18 years old.
Requirements
If you are qualified and you wish to apply for the OFW-EDLP loan, then you must prepare and submit certain documentary requirements to process your application. The requirements include:
- Proof of OWWA membership
- OWWA certification stating that you are an OWWA member.
- If the OWWA member OFW is abroad: Special Power of Attorney (SPA) duly authenticated by the Philippine consul
- Two (2) valid government-issued IDs
- Passport
- Seaman’s Book
- Proof of Billing
- Business documents
- Business proposal / feasibility study for the specific project that will generate revenue
- Registration Certificate from the DTI
- OFW applicant’s biodata
- Income tax return (ITR) for the last three years (if applicable)
- Financial statements filed with BIR for the last three years (if applicable)
- If applicable, the most recent interim financial statement
- Assets and Liabilities Statement
- Business/ Mayor’s permit, and
- Barangay certification from the barangay office with jurisdiction over the location of the business
- Collateral documents for security of loan
- Real estate mortgage (REM)
- Chattel mortgage (CM)
- Mortgage-able project
- Assets (Machines or Equipment)
- Other assets of the borrower
- OWWA certificate of attendance to prove that the borrower has completed EEDT
Application Procedures
Here’s how to apply for the OFW-EDLP loan:
If the interested OFW applicant is still abroad
- Visit the Embassy at the host country to inquire and confirm your OWWA membership and get a referral to an assigned officer at the OWWA office in the Philippines
Upon arrival in the Philippines
- Go to the OWWA Office and get a certification.
- Visit any branch of the Landbank of the Philippines (LBP) and present the OWWA certification.
- Attend the Enhanced Entrepreneurial Development Training (EEDT) and secure a certificate of attendance.
- Prepare your business plan and other documentary requirements.
- Submit all your requirements to Landbank and wait for the application to be reviewed and the business to be inspected (for existing business).
- Upon loan approval, wait for LBP to release the funds.
2. Helping the Economy Recover thru OFW Enterprise Start-Ups (HEROES) Loan Program
The recent global health crisis has taken the world by surprise, resulting in unprecedented job and livelihood losses. As such, the governments have decided to step up in an effort to support the entrepreneurial nature of OFWs and seafarers who were affected by the crisis. One such effort resulted in the creation of the HEROES (Helping the Economy Recover thru OFW Enterprise Start-Ups) Loan Program.
The HEROES Loan Program is a component program of the Department of Trade and Industry’s (DTI) Pondo Para sa Pag-asenso (P3) Fund. It is managed by the Small Business Corporation (SB Corporation), a government-owned and government-controlled corporation (GOCC) with the purpose of helping land-based or sea-based OFWs with micro, small, and medium-sized enterprises. Technically, it’s not an OWWA loan program, but it does require an active OWWA membership before a repatriated or displaced OFW or a seafarer can avail of its benefits and start a business.
Benefits
Under the HEROES Loan Program, OFWs may enjoy the following benefits:
- A zero-interest, no collateral loan ranging from Php 10,000.00 to Php 100,000.00
- Low service fees
- For 24-month loans: 6% service fee
- For 36-month loans (inclusive of a 12-month grace period): 8% service fee
- A built-in 12-month grace period
- Free business and marketing training, mentoring, and services
Qualifications
The HEROES Loan Program is available to all repatriated OFWs who satisfy the following criteria:
- Land-based OFWs returning to the Philippines due to the COVID-19 pandemic
- Non-professional OFWs who have returned to the Philippines due to layoffs caused by COVID-19
- Repatriated and returning land-based or sea-based OFWs who want to start their own business in the Philippines
Requirements
When applying for the HEROES Loan Program, the following documents are required:
- One (1) valid government-issued photo ID
- Scanned copy of passport information page
- Completely filled out HEROES Loan Application Form
- DTI Registration
- OWWA certification confirming the repatriation of the OFW applicant
- Audio-Visual Presentation (AVP) of the Business Plan
- Certificate of Completion (COC) for an online training session for start-ups from the Philippine Trade and Training Center (PTTC)
Additional Requirements
Depending on the amount of loan, the following additional documents will also be required:
For Loans amounting to Php 10,000.00 to Php 50,000.00
- DTI Registration
- Video Business Pitch
For Loans amounting to Php 50,000.00 up to Php 100,000.00
- SEC Registration
- Municipal/Mayor’s Business Permit
- Business Model Canvas
Application Procedures
If you are interested in the HEROES Loan program, then you may follow this guide:
- Pre-register for the HEROES program by registering for the online PTTC training: http://bit.ly/HEROESRegistrationForm.
- Key in the following information:
- Applicant’s name
- Age
- Gender
- Address
- Mobile number
- Passport number
- Email address
- Educational attainment
- Occupation as an OFW
- Return date to the Philippines
- Complete the free 3-day online training at the Philippine Trade and Training Center (PTTC), the DTI training arm.
- Prepare the requirements for submission.
- Visit the link: https://brs.sbgfc.org.ph/heroes
- Submit the requirements along with the application.
- Submit additional requirements as needed by SB Corporation
OWWA Seafarers’ Loan
If you are curious about whether there is a loan exclusively for OWWA members working as seafarers, the short answer is no. OWWA’s loan programs are available to all active OWWA member OFWs, regardless of whether they are land-based or sea-based.
That said, all available OWWA loans are, in essence, also available to seafarers as they are to land-based OFWs. These loans can only be used for business projects, though OWWA also offers numerous financial assistance programs that cover for all other types of needs that both OFWs and seafarers may have. At this time, however, there are no OWWA loans exclusively designed for seafarers and mariners abroad.
OWWA Personal Loans
At this time, OWWA also doesn’t offerany personal loans. Instead, there are OWWA cash grants meant to support member OFWs the same way that personal loans do—to be used for livelihood or business development, welfare, social, and accidental support, and even funeral gratuities, and special initiative—minus the need for repayment. If you are hell-bent on securing a personal loan, then you’d best try elsewhere because OWWA doesn’t offer one.
OWWA Salary Loans
Just like how OWWA does not offer a personal loan, OWWA also doesn’t give out salary loans. OWWA offers numerous programs that may help resolve the same problems you will resolve by taking out salary loans, but these programs mostly offer one-time assistance that don’t require payments later on. If you need to secure a salary loan, then go visit other government agencies like Social Security System (SSS) and Pag-IBIG instead.
OWWA Housing Loans
Sure, being an OFW usually starts with the dream of building a home. Unfortunately, as important as housing is to OFWs, it is something that OWWA doesn’t have any loan programs for. To put it bluntly, OWWA does not offer any housing loan or assistance program for Filipino workers overseas.
If you are an OFW and you are in the market for housing programs, assistance, or loans, you can check out Pag-IBIG or bank financing as available options. Some government agencies like the SSS and the National Housing Authority (NHA) also have programs that offer affordable housing. There are also private offerings that you can check, if you are so interested.
Important Reminders
Before applying for any OWWA Loan Programs, here are a few important reminders to keep in mind:
- The HEROES Loan application process starts when the OFW pre-registers for the free online training conducted by the Philippines Trade Training Center (PTTC).
- The OWWA loan program funds are to be used solely to start or maintain businesses or entrepreneurial activities.
- Current and prospective borrowers are expected to repay the HEROES loan on time in accordance with the amortization plan, or SB Corporation will take legal action.
- No other government reintegration program offers interest-free and collateral-free livelihood loans aside from OWWA’s HEROES Loan Program.
- Applicants must first complete the free PTTC entrepreneurship seminar or the EEDT program before they can apply for any of the OWWA loans.
- Loan applicants, whether land-based or sea-based, are required to be active OWWA members with complete documentary requirements.
- OWWA currently doesn’t offer any other loan programs at the moment.
Video: How to Avail an OWWA Business Loan for OFWs
To learn more about how to secure an OWWA Business Loan for OFWs, land-based or sea-based, then you would want to watch this Youtube video from Mommy Thoughts.
Frequently Asked Questions (FAQs)
For further assistance, you may check the following questions and answers about getting an OWWA loan as an OFW or a seaman:
1. Does OFW-EDLP require a collateral?
Yes. You will need to present the following collateral documents for security of loan:
- Real estate mortgage (REM)
- Chattel mortgage (CM)
- Mortgage-able project
- Assets (Machines or Equipment)
- Other assets of the borrower
2. Do the OWWA loans give a grace period?
Yes, the OFW-EDLP includes a 2-year grace period whereas the HEROES Loan Program comes with a built-in 12-month grace period.
3. Can I still get a loan from OWWA if my business was already established?
Yes. You may still apply for the OWWA loans to cover for business expansion expenses or acquisition of fixed assets even if the business is already established and operational.
4. Where can I get a business plan?
You may write your own business plan using what you have learned from the business training and with the help of your mentors or you may also hire a professional to help you construct a better business plan that will help you get your loan approved by the bank.
5. What is the best OWWA loan for repatriated OFWs?
It depends on the purpose of the loan, but if you want a zero-interest, no collateral loan, then you want to apply for the HEROES Loan Program.
6. Are there any chances of getting declined?
Yes. Applications for the OWWA loan programs are not guaranteed. Just like any other loan program, there is a possibility of getting rejected. To avoid rejection, make sure you are eligible for the program and that you submit the complete requirements for your application to get approved.
7. What if I wasn’t able to pay the loan?
If your chosen loan required collateral, they will seize those assets as collateral for your unpaid loans. If you availed the loan via the no-collateral HEROES Loan Program, the SB Corporation may file a legal case.
8. What are the businesses that would qualify for the OFW-EDLP loan?
Applicants who are engaged in the following micro, small, and medium-sized enterprises may apply for the OWWA loan program:
- Franchising business;
- Rental business;
- Construction business;
- Service/Trading business;
- Transportation service;
- Agricultural and non-agricultural production;
- Contract tie-up with the country’s top 1000 corporations; and
- Other viable projects, whether existing or new.
9. What are the requirements in applying for the OWWA loan?
To qualify for the OFW-EDLP, you need the following:
- Proof of OWWA membership
- OWWA certification stating that you are an OWWA member.
- If the OWWA member OFW is abroad: Special Power of Attorney (SPA) duly authenticated by the Philippine consul
- Two (2) valid government-issued IDs
- Passport
- Seaman’s Book
- Proof of Billing
- Business documents
- Business proposal / feasibility study for the specific project that will generate revenue
- Registration Certificate from the DTI
- OFW applicant’s biodata
- Income tax return (ITR) for the last three years (if applicable)
- Financial statements filed with BIR for the last three years (if applicable)
- If applicable, the most recent interim financial statement
- Assets and Liabilities Statement
- Business/ Mayor’s permit, and
- Barangay certification from the barangay office with jurisdiction over the location of the business
- Collateral documents for security of loan
- Real estate mortgage (REM)
- Chattel mortgage (CM)
- Mortgage-able project
- Assets (Machines or Equipment)
- Other assets of the borrower
- OWWA certificate of attendance to prove that the borrower has completed EEDT
For the HEROES Loan, here are the list of requirements:
- One (1) valid government-issued photo ID
- Scanned copy of passport information page
- Completely filled out HEROES Loan Application Form
- DTI Registration
- OWWA certification confirming the repatriation of the OFW applicant
- Audio-Visual Presentation (AVP) of the Business Plan
- Certificate of Completion (COC) for an online training session for start-ups from the Philippine Trade and Training Center (PTTC)
10. Can I apply for an OFW loan from OWWA even if I am not an active member?
No. Being an active member of OWWA is necessary in order to get an OFW loan. You may keep your OWWA membership active by paying US$25.00 to keep it valid for two (2) years. OWWA has also made it easier for you to apply for your membership via OWWA Mobile App.
11. Where can I learn more information about the OWWA Loan programs?
If you need more information about the OWWA Loans, you may contact OWWA or Land Bank of the Philippines through the following contact details:
Overseas Workers Welfare Association (OWWA)
Office Address: F.B. Harrison St, Pasay, Metro Manila
Tel. No.: 8891-7601 to 24
OWWA hotline number: 1348, (02) 1348 (Regional), (+632) 1348 (International)
OWWA Email Address: owwacares@owwa.gov.ph, commandcenter@dole.gov.ph
OWWA Facebook page: https://web.facebook.com/OWWAofficial
OWWA website: https://owwa.gov.ph/
Land Bank of the Philippines:
Customer Hotline Number: +632 8 405 7000
Domestic Toll-Free Number: 1 800 10 405 7000
Email Address: customercare@mail.landbank.com
Summary
Contrary to popular belief, borrowing money isn’t always a negative thing. In fact, loans open up opportunities, not only for the lender, but also for the borrowers. It’s a lucrative industry that even government offices like OWWA, SSS, and Pag-IBIG offer loans in an effort to help their patrons and grow their funds at the same time.
The OWWA Loan Programs were created in an effort to support the OFWs and their families by encouraging entrepreneurship. The loan programs offer funds to help the OFWs create a steady income and to build opportunities for their community upon returning to the country for good.
Contact Information
For more information, you may reach out to OWWA via the following contact information:
Overseas Workers Welfare Association (OWWA)
Office Address: F.B. Harrison St, Pasay, Metro Manila
Tel. No.: 8891-7601 to 24
OWWA hotline number: 1348, (02) 1348 (Regional), (+632) 1348 (International)
OWWA Email Address: owwacares@owwa.gov.ph, commandcenter@dole.gov.ph
OWWA Facebook page: https://web.facebook.com/OWWAofficial
OWWA website: https://owwa.gov.ph/
You may also reach out to them via the OWWA 24/7 Operations Center via the following:
OWWA 24/7 Operations Center
Landline: (+632)833-OWWA or (+632)833-6992
Globe Hotline: 2917 (Press “3” for OWWA)
Mobile/SMS text messaging: (0917)TXT-OWWA or (0917)898-6992
Facsimile: +63-2-8040638
Email address: opcenter@owwa.gov.ph/ owwa_opcenter@yahoo.com