25 OFW dependents avail of OWWA loan
By:LARRY LOPEZ / PIA KALINGA
Posted: 11-Sep-2011 / 4 years 50 weeks ago
TABUK, Kalinga -Twenty five dependents of Overseas Filipino Workers (OFWs) in the province apply for loan assistance after undergoing the two-day orientation given by the Overseas Workers Welfare Administration (OWWA).
The assistance under OWWA’s Reintegration Program to OFWs grants collateralized loan as start-up capital to OFW dependents interested to open livelihood projects. OWWA’s reintegration program aims to develop families of OFWs to become self-reliant and lessen their dependence on their OFW relative.
OWWA has tie-up project with the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) under a “50-50” capital share scheme for the loans.
DBP and LBP grant a loan amount from P300,000 to P2M, depending on the business proposal and collateral of borrowers, with a maximum paying period of six years and an annual interest of 7.5% to 9% .
Lourdes Canseco of the Labor and Employment Provincial Office here said through the program, OFW dependents are trained to engage in income generating activities, at the same time saving the earnings of their OFW relative. This way, OFW families would not go back to their previous economic state when the work contracts of their relatives end, Canseco explained.
OWWA study has shown how families of OFWs just squander their money on consumable items and therefore should be oriented on the reintegration program.
During the orientation, OWWA made it clear that borrowers need to submit land titles as collaterals of the loans, saying this is different from the grant OWWA is giving to displaced returnees amounting to P10,000 which is collateral-free.
Other conditions for the loan include business plan of the borrower which states his feasibility study and financial statements and certificate of entrepreneurial training showing his capability to run the started business.*(JDP/LL- PIA CAR, Kalinga)