Author: Larao Libas

One of the projects offered by the Overseas Welfare Workers Association or OWWA is the Enterprise Development and Loan Program, popularly known as OWWA Loan. Its primary aim is to aid Filipino migrant workers to go back and stay in the Philippines for good through business enterprise development.

Here’s the catch: if you wish to avail of the OWWA loan, you need to undergo Enterprise Development Training or EDT. In fact, it is one of the major requirements you need to comply with before your loan application is processed. Upon submission of your loan application, you need to show proof that you finished the course.

EDT has three phases, which you will learn more in detail below. Phase 1: Program Orientation and Business Appreciation

In this phase, you will be introduced to the concept of business, understanding a business venture, and the qualities you need to posses to help you in running and maintaining your chosen field. There will also be Personal Entrepreneurial Assessment to help you identify your strengths and possible weaknesses in handling a business.

At this phase, you will also be asked to present your business ideas and draft your business plan. Experts will be looking into your business plans, so pay attention as to the areas of improvement.

In case you have questions on the OWWA loan facility, this is the perfect phase to raise them so you will have a better understanding.

Then, you can move on to the next phase.

Phase 2: Project-Specific Training / Visit to Demo Farms / Immersion 

Your chosen business enterprise can be divided into two categories: AGRI and NON-AGRI.

If your proposed business is in the agricultural sector, you will have project-specific trainings and hands-on experience with relevant government agencies such as Department of Agriculture or Department of Agrarian Reform. You will also have social preparations sessions where you will attend trainings on bookkeeping or record keeping, and other skills training such as food handling, marketing strategies, and developing production skills.

If you prefer a business venture that is non-agricultural, OWWA will refer you to relevant agencies such as TESDA and DTI. You will be taught management and technical skills applicable to your proposed business, plus networking techniques to help your business grow. You will likewise be given a Basic Productivity Toolbox as part of the Social Preparation Intervention.

After this stage, you will move on to the last phase.

Phase 3: Business Plan Writing Seminar

You already have a business plan at the start of your EDT. At this stage, you will be asked to incorporate all your learnings from phases 1 and 2 into your business plan. Land Bank will give you basic knowledge on how to prepare a business plan to boost your chances of approval.

Once you completed the three phases of Enterprise Development Training, you will be given a Certificate of Attendance to prove that you went through the process. Then, complete the other requirements needed to process your OWWA Loan application. Thereafter, you will be endorsed to Land Bank, where a 40-day verification period will run as part of the application process.

To know the schedule of EDT, you may contact the OWWA Office near you.

At this point, you know what OWWA Loan is, its main purpose, how it works, the business allowed by the loan facility, the requirements you need to comply with, and who the eligible borrowers are. It’s time to bring them all together to guide you better in applying for this loan facility specifically designed for Filipino migrant workers.

Here is a step-by-step procedure on how to apply for OWWA Loan: Step 1: Attend and complete the Enterprise Development Training or EDT. Learn more about EDT in detail here.

Step 2: Prepare the pre-processing requirements needed for processing of your loan application. This includes proof of OWWA membership, Certificate of Attendance foe EDT, and two (2) valid IDs among others. Check this post to know the detailed list of requirement you need to prepare before submitting your loan application.

Note: Make sure that your requirements are complete upon submission of OWWA Loan application. This will make it easier and faster for you to process your loan application. The requirements will be submitted either in OWWA Main Office or regional offices, whichever is more convenient for you.

Step 3: Submission of Business Plan to the Land Bank of the Philippines (LBP) upon certification and endorsement of OWWA. At this phase, LBP will evaluate your project proposal based on the borrower’s credit worthiness and project viability. Likewise, Land Bank will package your loan application based on their credit facilities proposal.

Step 4: Loan evaluation, packaging, and approval. This will take 45 days upon receipt of loan requirements, which is why it is important that you prepare all the necessary documents when applying for an OWWA Loan.

Keep in mind that attending EDT and submitting all the requirements will not guarantee automatic approval. Credit institutions follow certain guidelines in approving every loan application and as long as you can show the viability of your proposed business and prove your credit worthiness, the higher your chances will be.

At this point, you know what an OWWA Loan is, how it aims to help Filipino migrant workers build a sustainable life in the Philippines, and the requirements you need to accomplish to process your loan application.

Here’s the next question: Are you an eligible borrower?

Apparently, being a migrant worker is not enough so you could avail of the benefits of OWWA Loan. Apart from the requirements you need to submit, the borrower itself – and that means you – must also fulfill the requirements provided for by OWWA.

How will you know if you are an eligible borrower? You must be a certified OWWA member, whether active or non-active. You must be able to prove such by presenting POEA-attested employment certificate, passport with POEA-LAC stamp, or your E-card. Consequently, you must also complete the Enterprise Development Training (EDT) before you can be allowed to avail of this loan facility. You can learn more about EDT here.

Let’s say you want to apply for OWWA Loan, but you are working abroad. The good news is you can still apply as long as you are represented by any of the following:

• If Married – Your legal spouse.
• If Single, Separated-in-Fact, or Widower – Your parents who are not older than 60 years old upon maturity of the loan or your child/ren at least 18 years at the time of availment of OWWA loan.

Another cause of concern is the age of the borrower. If you or your attorney-in-fact (a person you authorized to perform business-related transactions in your behalf by virtue of a power of attorney) will be more than 60 years old at the time of loan maturity, you will be required to have a co-maker. Your co-maker can be your children at least 18 years of age or your sibling.

Keep in mind that if you plan to start your business venture, you can avail of OWWA Loan within three years from your date of arrival in the Philippines. The three-year rule will not apply if you have an ongoing business already.

With these requirements, are you an eligible borrower? Make sure you are to make the processing of your loan easier and hassle-free.

The OWWA Loan facility provides a promising venue for Overseas Filipino Workers to start a new life and provide a sustainable future for their families without leaving the country. Apparently, there are requirements you need to comply with to make sure your application for OWWA Loan is approved. Here is a detailed list of requirements you need to submit if you are an INDIVIDUAL BORROWER:

• Proof that you are a bona fide OWWA member.
• Proof of OWWA contribution such as POEA-attested employment certificate, your passport with POEA-LAC stamp, E-card, or OWWA Information Sheet.
• Business Plan or Feasibility Study of your proposed business. Take note that your business must be among the eligible projects allowed by OWWA.
• Two (2) valid IDs with signature.
• Barangay Certification as proof of residency based on your given address.
• Proof of billing address.
• Sketch of your place of residence.
• Income Tax Return (ITR) for at least three years.
• Statement of Assets and Liabilities.
• Mayor’s Permit where the business is/will be located.
• Marriage Certificate for married borrowers or Birth Certificate for single availee.
• Collateral / Security documents, whether real estate or chattel mortgage.
• If the business is already existing: BIR-filed financial statements for at least three years, latest interim financial statements, and Certificate of Registration with the Department of Trade and Industry (DTI).

You must also complete the Enterprise Development Training, which will be discussed further in a separate post.

The OWWA also allows GROUP BORROWERS such as cooperatives, partnerships, associations, or corporations to avail of this loan facility. If you are borrowing as a group, here are the requirements you need to submit:

• Proof of OWWA contribution, at least that of the officers.
• Business Plan or Feasibility study of the proposed business.
• Security / Collateral documents, which will be discussed further below.
• Board or Partnership Resolution signifying intent to undertake or expand a business / project with the help of OWWA loan facility.

For Corporations: 

• Proof of Registration with the Securities and Exchange Commission (SEC)
• Articles of Incorporation
• Ratified By-Laws

For Partnerships:

• Proof of Registration with the Securities and Exchange Commission (SEC)
• Mutually Agreed Terms

For Cooperatives

• Proof of Cooperative Development Authority
• Articles of Incorporation

For Associations

• Proof of Registration with Department of Labor and Employment
• Constitution
• By-Laws

Keep in mind that the Loan Security or Collateral shall be any of the following:

• Torrens Certificate Title (TCT) Condominium Certificate of Title (CCT), Tax Declaration, and other pertinent documents related to planned mortgageable assets.
• OR/CR for Chattel Mortgage
• Lease Rental Contract
• Receivables
• Other contract agreements related to the execution of Deed of Assignment or Purchase Order.

It is imperative that you comply with all the requirements so that your loan application will be processed as soon as possible. This way, processing of the loan and release of funds will be faster, thereby allowing you to start sooner in your business venture.