Guide on OWWA Business Loan for OFWs — How Much You May Borrow
OWWA BUSINESS LOAN FOR OFWS – Here is a guide on the loanable amounts under the business loan offer for overseas Filipino workers.
The OWWA business loan offer under the Overseas Filipino Workers – Enterprise Development and Loan Program is open for individual and group applicants. If you are an OFW or you know someone who is working abroad and wants to start a business, the government agency has set huge loanable amounts for it.
The loanable amounts under the OWWA Business Loan offer for OFWs depend if you are applying as an individual borrower or proprietorship or as a group such as a partnership, corporation, or cooperative.
If you are applying as a single proprietorship, here are the loanable amounts under the offer:
- Minimum Loanable Amount — Php 100,000.00
- Maximum Loanable Amount — Php 2,000,000.00
If you are applying as a partnership, a corporation, or a cooperative, here are the loanable amounts under the OWWA Business Loan offer for OFWs:
- Minimum Loanable Amount – Php 100,000.00
- Maximum Loanable Amount – Php 5,000,000.00
With regards to the cost sharing for the project, according to OWWA, the borrower’s equity must be at least 20% of the TPC or the Total Project Cost. Up to 80% of the TPC may be covered by the loan.
How about the interest rate under the loan offer? The Overseas Workers Welfare Administration has set a 7.5% interest rate per annum for the entire duration of the loan.
With regards to the loan repayment, it may be through a short term repayment which allows borrowers to pay for the loan for up to one (1) year or through a Term Loan which is based on cash flow. The Term Loan limits up to 7 years inclusive of the two (2) years of grace period.