LANDBANK Small Business Loans for Overseas Filipino Workers — Financing a business is no longer a big problem for returning Overseas Filipino Workers. The Land Bank of the Philippines (LANDBANK) is still offering low-interest small business loans to returning OFWs wanting to start a business they can call their own but lack business start-up capital.
During last month’s launching of the OFW Reintegration Program, LANDBANK approved the twelve returning overseas Filipino Workers business loan application. P8.3 million loans were approved for returning OFWs from Bulacan, Pampanga, Zambales, Batangas, Iloilo, Bacolod, Cebu, Bukidnon, Davao, and Pasay as part of LANDBANK’s P1-billion commitment to the P2-billion reintegration loan program jointly implemented by OWWA, LANDBANK and DBP.
The OFW-RP aim to provide economic opportunities for returning OFWs affected by political crises in the Middle East and other countries seriously stricken by natural calamities.
Among the initial loan that LANDBANK approved are a P2-million working capital requirement for an existing music school and another P2 million for a proposed business in agri-vet supplies trading.
Other approved loans include a P1-million business in Nuat Thai Foot and Body Massage, a P500,000 dental laboratory, P400,000 each for business in LPG Gas Trading and a fitness center, P300,000 each for palay trading, and an internet cafe business; and a total of P1.4 million for four hog fattening projects.
According to LANDBANK President and CEO Gilda Pico, they were glad to help OFWs start their own businesses and engage in market-led economic activities. The bank offers a range of loan products including project modules such as bangus in bamboo cages, tilapia culture in earthen pond, hog fattening project and native chicken project. The project modules will provide OFW-borrowers information on investment requirements and projected monthly income for the said projects.
Qualified OFWs may borrow from P300,000 to as much as P2 million at 7.5% interest per annum payable within one year of a maximum of seven years, depending on the loan project. LANDBANK will extend loan up to 80 percent of the total project cost while the remaining 20 percent is the equity of the borrower.
Eligible projects are those with confirmed market, market contract or service contracts that will generate an income of at least P10,000 every month. Qualified borrowers are OWWA-certified OFWs who can no longer work overseas and who now want to engage in business and need financing assistance for working capital and fixed asset acquisition in their preferred business.