OWWA Loan for an OFW wife? A wife of an OFW asked OWWA about what sort of business she can start as a spouse of an OFW who is an active member. Samantha Natividad said that her husband is an OFW for a long time and she wants to start a business to help her husband as their children are growing up as well as their expenses.
As a helpful information for other OFW spouses who also want to help their OFW partners, we made this info graphics regarding this topic.
Does OWWA have an existing program for OFWs who want to start their own business?
Yes. The Overseas Workers Welfare Administration (OWWA) has two existing programs under the reintegration program for those who want to start their own business.
What are those?
In the first program, OWWA can give a ‘grant’ for OFW spouses who want to start even a small scale business.
How much is the amount of funds OWWA can provide under this program?
The fund that can be granted under this program depends on what kind of business they want to start. However, the maximum amount is only P20,000.
What is the other program?
The other program is called a ‘special loan program’.
this loan program is through partnership with the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines.
How much can an OFW spouse can avail on this program?
OFWs and their spouses can avail a loan amounting from P300,000 up to P2,000,000.
How much should be the net income of an OFW to avail of this loan?
For an OFW to avail of this loan, he/she must be earning a net monthly income of at least P10,000 to avail the loan amount of P3,000 up to P2 Million.
How much will be the interest rate?
The loan will have an interest rate of 7.5% annually.
What will be the mode/frequency of payment?
Depending on project’s cash flow, the OFW can pay it on monthly, quarterly or annual basis.
Where should the OFW wife/husband apply to avail these programs?
They can apply at any OWWA Regional Welfare Office (ORW) nearest to them.
What are the eligibility requirements for the OFW to be qualified to avail?
1. The OFW must be an active OWWA member.
2. OFW husband/wife who want to avail must have completed the Entrepreneurial Development Training (EDT) conducted by NRCO and OWWA ORWsin cooperation with the Department of Trade and Industry/Philippine Trade Training Center (PTTC)/ Bureau of Micro, Small and Medium Enterprise Development (BSMED).
3. They must provide 20% equity.
4. The project or business must generate a net income of at least P10,000 for the OFW.
For details and information regarding these program, you can contact OWWA Regional Offices in your area.
*These information is based on the answer provided by OWWA Deputy Administrator Josefino Torres.
Dominador Say, undersecretary of the Department of Labor and Employment (DOLE), said that talks are underway with Chinese embassy officials on this possibility. China’s five major cities, including Beijing, Shanghai and Xiamen will soon be the destination for Filipino domestic workers who are seeking higher income.