MANILA – Loans extended to overseas Filipino workers (OFWs) under the OFW Reintegration Program (OFW-RP) have reached PHP2.68 billion as of March 2024, according to the state-run Land Bank of the Philippines (LandBank).
In a statement released on Monday, LandBank detailed that the OFW-RP, a collaborative effort with the Overseas Workers Welfare Administration (OWWA), is designed to help OFWs establish business ventures in the Philippines, providing them with viable alternatives to working abroad.
As of March, the program has approved a total of PHP2.68 billion in loans to 1,504 borrowers.
Program Details and Eligibility
The OFW-RP allows eligible OFWs to secure loans for working capital or the acquisition of fixed assets. Single proprietors can avail loans ranging from PHP100,000 up to PHP2 million, while groups of OFWs can borrow up to PHP5 million. The loans come with a fixed interest rate of 7.5 percent per annum.
Short-term loans under the program are repayable within one year. For term loans, the repayment period is based on cash flow but cannot exceed seven years, including a maximum grace period of two years for the principal.
As of March, the program has approved a total of PHP2.68 billion in loans to 1,504 borrowers.
Diverse Business Opportunities
The program supports a broad spectrum of business ventures, including franchises, agricultural and non-agricultural production and marketing, construction projects, rental services, trading businesses, and transportation services.
Supporting OFWs’ Economic Contributions
“We recognize the significant contributions of our OFWs to the economy, and through this program, we are providing them access to affordable financing and essential support services,” said Lynette Ortiz, LandBank President and CEO.
“We hope to turn their hard-earned savings abroad into thriving businesses here in the Philippines for their families and beneficiaries,” Ortiz added.
The OFW-RP stands as a testament to the Philippine government’s commitment to bolstering the economic reintegration of OFWs, transforming their overseas earnings into productive investments at home.
