What if the OWWA-NLSF Livelihood Development Program for OFWs (OWWA-NLSF LDPO)?

The OWWA-NSLF LDPO (or the Program) is a joint undertaking of OWWA and NLSF (National Livelihood Support Fund) which delivers the economic component of the Comprehensive FW Reintegration Program. It provides entrepreneurial development services and credit facilities to OFWs, their families and organizations.

Who are qualified to avail of the OWWA-NLSF LDPO?

  1. Member-OFWs, former member-OFWs or immediate family member.
  2. Immediate family member (only one family member availee per OFW):

MARRIED OFW:

a. Wife of OFW
b. Children (at least 21 yrs old)

SINGLE OFW:

a. Parents
b. Brother or sister (at least 21 yrs old)

What are the possible enterprises under the OWWA NLSF LDPO?

  1. Trading (Ex. Gen. merchandise, buy and sell, etc)
  2. Services (Ex. Repair shop, restaurant, etc)
  3. Manufacturing (Ex. Meat/fruit processing, etc)
  4. Agri-business (Ex. Tilapia culture, piggery/poultry etc.)

What is the Loanable Amount/Interest Rate/Collateral/Requirement of the Program?

  1. Individual borrower – P200,000.00 (Maximum)
  2. Group (per legally organized of at least 5 members) – P1,000,000.00 (maximum)

Interest Rate per year – 9%
Debt-Equity Ratio – 85:15

Collateral Requirement – 100% (amount of loan)

What is the Debt-Equity Ratio?

Debt-Equity Ratio is a percentage contribution of the loan

Equity as part of the project cost shared by the proponent. It may be in the form of “Cash or Project assets” like machine, building, project materials, etc.

The equity contribution of the proponent is 15 percent of the total project cost.

What assets are acceptable as collateral? What are the basic documents for submission?

  1. Real Estate Mortgage (REM) – unmortgaged TCT with no delinquent realty tax and with appraised value of not less than the loanable amount.
    • Land Title
      • Photocopy of Transfer Certificate of Title
      • Tax Declaration
      • Current Realty Tax Payment Receipt
      • Location Plan with Vicinity map
    • Ancestral Land
      • Tax Declaration
      • Certificate of Non-Delinquency
  2. Chattel – Motor Vehicles /Machines/Equipments/Appliances.
    • Motor Vehicle (Certificate of Registration, Insurance Policy Coverage – Comprehensive Insurance)
    • Equipment/Machine/Appliance (Brand New up to 3 yrs)
      • Official Receipts

What are the acceptable purposes of the loan?

  1. Working Capital
  2. Assets acquisition (except lot) Building construction/Improvement

What are the basic loan requirements?

  1. Accomplished Application form (W/ 2×2 picture)
  2. Proof of OWWA Contribution (any of the following):
    • Passport with POEA-LAC Stamp
    • OWWA Identification Card or E-Card
    • POEA-Attested Employment Contract
    • Information sheet from OWWA
    • Overseas Employment Certificate (OEC)
  3. Business Plan
  4. Financial Statement in case of existing business
  5. Business Permit (pre-release condition for start up)
  6. Collateral Documents / Ownership Titles
  7. For immediate family member:
    • Marital Consent (for married OFW)
    • Authorization (for single OFW)
    • Documents to establish proponents relationship with OFW
  8. Others (if needed)
    • Price quotation fro 3 suppliers
    • Bill of Materials or Building Plan
  9. Additional Requirements for Group Loan:
    • Registration (with any of the following):
      • SEC for Corporations
      • CDA for Cooperatives
      • SEC for Partnerships
    • Fundamental Documents
      • Articles of Incorporation for corporations
      • Articles of Cooperation for Cooperatives
      • Ratified Group By-Laws for Partnerships
      • Board/Group Resolution specifying to undertake a group project and to contact loan
      • Audited Financial Statements for the last 3 year.

Where can loan application be filed?

Loan application can be filed at OWWA Regional Offices.