A. What is the OWWA-NLSF Livelihood Development Program for OFWs(OWWA-NLSF LDPO) ?
The OWWA-NLSF LDPO (or the program) is a joint undertaking of OWWA and NLSF (National Livelihood Support Fund) which delivers the economic component of the Comprehensive OFW Reintegration Program. It provides entrepreneurial development services and credit facilities to OFWs and their families.
B. Who we qualified to avail of the OWWA-NLSF LDPO?
1. Member-OFWs, farmer member-OFWs (21-60 years old)
2. Immediate family member (only ale family member availee per OFW:
- Married OFW – spouse or children (21-60 years old)
- Single OFW – parents/brother or sister (21- 60 years old)
C. What are the possible enterprises under the OWWA-NLSF LDPO?
1. Trading (Ex. Gen. Mdse., Buy & Sell, etc.)
2. Services (Ex. Repair Shops, restaurants, parlors, etc.)
3. Manufacturing (Ex. Meat/fruit processing, shoes, rtw, etc)
4. Agri-business (Ex. Tilapia culture, piggery, poultry, etc)
D. What are the acceptable purposes of loan?
1. Working Capital – for purchase of merchandise goods and/or raw materials
2. Business assets acquisition (except lot) – for purchase of machines/equipments
3. Business site construction/improvement
E. What is the loanable amount/ interest rate/collateral requirement of the program?
Loanable Amount: Php200,000 (maximum) ; Php50,000 (minimum)
Interest Rate: 9% Per Year
Service & Facilitation Fee: 7% (one time)
C.I. / Appraisal Fee: Php2,500 (upon application)
Collateral Requirement: 100% (amount of loan)
Debt-Equity Ratio: 85:15
Debt-Equity Ratio is a percentage contribution of the loan
Equity is a part of the project cost shared by the proponent.
It may be in the form of “cash” of “project assets” like machine, building, project materials, etc. The equity contribution of the proponent is 15 percent of the total project cost.
F. What assets are acceptable as collateral? What are the basic documents for submission?
1. Real Estate Property – unmortgaged TCT with no delinquent realty tax and with appraised value of not less than the loanable amount. The property must be located within the area covered by the conduit.
- Transfer Certificate of Tree (TCT)
- Tax Declaration of Property
- Current Realty Tax Payment Receipt
- Location Plan with Vicinity Map
2. Chattel – four wheel vehicles (except jeep and owner); acquired brand new up to three years upon the date of filing of application.
- Certificate of Registration (CR)
- Insurance Policy Coverage (Comprehensive Ins.)
Special Power of Attorney (SPA) must be presented if the properly is not in the name the applicant or principal borrower.
G. What are the basic loan requirements?
1. Business Plan/Project Feasibility Study
2. Financial Statements – in case of existing business
3. Collateral (REV o Chattel Mortgage) Requirements
4. Accomplished Application Form
5. Proof of OWWA Contribution such as: ( any 2 of the following)
- Passport with POEA-LAC Stamp or Seaman’s Book
- OFW Data File from OWWA or Information Sheet
- POEA attested Employment Contract
- OWWA Identification Card or E-Card
- Overseas Employment Certificate
6. Sketch to the applicant’s residence & business site
7. 2 pcs. 2×2 pictures of the applicant
8. Marriage Contract & Marital Consent (for married OFW)
9. Birth Certificate & Authorization (for dependent of single OFW)
10. Business Permit (pre-release condition of loan)
H. What is the loan term?
1. The loan is payable in 1 to 3 years.
2. The amortization is monthly or semi-monthly.
3. Payments should be made through post-dated checks (PDC)
I. Where can loan applications be filed?
Loan applications can be filed at OWWA Regional Offices where the business site is located.
