Landbank approves P500M worth of loans to 709 OFWs

The Land Bank of the Philippines (Landbank), as part of its P1 billion credit facility for overseas Filipino workers (OFWs), has approved P508.8 million in loans to OFWs who plan on setting up businesses.

In a news release, Landbank president and chief executive officer Gilda Pico, said the bank has approved loans to around 709 returning OFWs as of the end of April this year.

According to Pico, the OFWs borrowed money to fund their businesses in areas such as poultry and egg production, crop production, fish trading, groceries, transport, construction, and hog raising and fattening.

“By becoming entrepreneurs, our OFWs no longer need to leave the country to earn sufficient income," Pico said.

"This program not only empowers our modern day heroes to improve their lives but also helps boost the country’s economy,” she also said.

Pico said the loans are part of the government's OFW Reintegration Program done with the collaboration of the Department of Labor and Employment (DOLE) and the Overseas Workers Welfare Administration (OWWA).

The Reintegration Program was launched on June 7, 2011 during the celebration of the 1st National Congress of OFWs and Families.

To apply for a loan, applicants must be OWWA members and submit a business plan, a certification from their barangay verifying their address, and an application form.

They must also complete the OWWA's entrepreneurship development training. Afterwards, they can proceed to the nearest Landbank Lending Center for consultation and business plan evaulation.

Loan recipients may use the money as working capital or for fixed asset acquisition. Loan amounts range from P300,000 to P2 million.

Active OFWs may also apply for the loans, provided they execute a special power of attorney in favor of their spouse, parent, or children. - Gian C. Geronimo, VVP, GMA News