Land Bank of the Philippines said it continues to strengthen its commitment to overseas Filipino workers (OFWs) seeking to permanently return home and achieve financial security through its Overseas Filipino Workers Reintegration Program (OFW-RP).
The bank said that as of end-March 2024, it approved P2.68 billion in loans to 1,504 borrowers under the program which is jointly implemented with the Overseas Workers Welfare Administration.
It aims to enable OFWs to pursue business opportunities in the Philippines as an alternative to overseas employment.
“We recognize the significant contributions of our OFWs to the economy, and through this Program, we are providing them access to affordable financing and essential support services. We hope to turn their hard-earned savings abroad into thriving businesses here in the Philippines for their families and beneficiaries,” said LandBank president and chief executive Lynette Ortiz.
Under the OFW-RP, eligible OFWs may avail of loans for working capital or acquisition of fixed assets at a minimum amount of P100,000 and up to P2 million for a single proprietor borrower, and P5 million for a group of OFW borrowers, with a fixed interest rate of 7.5-percent per annum.
The short-term loans under the program are payable up to one year, while the tenor for term loans will be based on cash flow but not to exceed seven years, inclusive of a maximum of two-year grace period on the principal.
The OFW-RP offers funding for a wide range of viable business ventures, including franchises, agricultural and non-agricultural production and marketing endeavors, construction projects, rental services, trading businesses and transportation services, among others.
Aside from providing access to credit, LandBank has also been supporting OFWs by facilitating the efficient delivery of financial support under the social amelioration programs of the Department of Labor and Employment (DOLE).
