OWWA Business Loan Interest Rate for OFW Borrowers — Here’s A Guide…

Guide on OWWA Business Loan Interest Rate Implemented by Government Agency

OWWA BUSINESS LOAN INTEREST RATE – Here is a guide on the interest that your loan under the OFW-EDLP may incur.

Are you thinking about applying for the Overseas Filipino Workers – Enterprise Development and Loan Program of the Overseas Workers Welfare Administration or OWWA? If you are an OFW or you have an OFW family member who wants to start or grow a business, the loan offer can greatly help.

Photo Credit: The Filipino Times

The OWWA Business Loan covers several types of businesses which you can check below. The government agency takes the bigger percentage in the business costs so it won’t be heavy on the part of the OFW who wants to start or grow an existing business.

OWWA Business Loan Interest Rate

The Overseas Filipino Workers – Enterprise Development and Loan Program is open for a lot of businesses such as the following:

  • Construction/rental business
  • Franchising business
  • Service/trading business
  • Contract tie-up with top 1000 corporations
  • Transport service
  • Agri- and non-agri production/manufacturing with identified market linkage and raw material sources
  • Any viable project whether existing or new, that should generate a net cash flow sufficient to pay the projected amortization of the loan (or resulting into debt service ratio of at least 1)

With regards to applying for the OFW Business Loan offer, the government agency has set a list of the qualifications for application. To be eligible for the offer, the OFW borrower must meet the following eligibility requirements:

  • certified OWWA Member, active or non-active
  • has completed the Enhanced Entrepreneurial Development Training (EEDT)
  • if the OFW is singe, a widow or widower, or separated-in-fact, he/she may be represented by his/her parents who are not more than 60 years old upon the maturity of the loan or children who are at least 18 years old at the time of the loan application
  • if the OFW-loan applicant is about to leave the country or is currently in abroad, he/she may represented by his/her spouse

The minimum and maximum loanable amounts under the OWWA Business Loan for OFWs depend on the type of business to be financed. With regards to the OWWA Business Loan interest rate, it is at 7.5% per year.

The said OWWA Business Loan interest rate will be implemented on the loan until it is fully-paid. Up to one (1) is alloowed for short-term loans. For term loans, the borrowed amount may be repaid for up to seven (7) years.

Are you interested to apply for the loan offer? There are requirements for OWWA Business Loan for OFWs that you must comply.

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