|Image Credit: landbank.com|
Development Bank of the Philippines (DBP) and Land Bank of the Philippines (Landbank) are making a loan facility available and ready for Filipino migrant workers and their families who want to start up a business, as reported by several local news sites, June 30, 2011.
Francisco F. Del Rosario, DBP president and chief executive officer, through a chance interview at the DBP headquarters in Makati on Monday, was reportedly quoted saying, “This loan facility will give OFWs (overseas Filipino workers) and their families the opportunity to either put up their business or upgrade their existing businesses.”
Mr. Del Rosario said through similar reports that loans may be used for the construction, renovation, expansion, and repair of the OFW’s existing business or as seed money for a new business and acquisition of new equipment.
DBP officials launched the loan facility dubbed the “DBP-OFW Reintegration Program” on June 24 at the Philippine Overseas Labor Office in Dubai in the United Arab Emirates (UAE).
Requirements and conditions:
- OFWs who are members of the Overseas Workers Welfare Administration (OWWA) with existing employment contracts will be covered by the facility.
- Only one OFW per family is eligible to apply for the loan. In instances that the OFW is out of the country, a relative under the first degree of consanguinity that is the relative may represent him or her should be the OFW’s parent, child or sibling. The relative also has to present a special-power-of-attorney.
- DBP or Landbank may provide up to 80% of the total cost of the business project with a cost amounting to P300,000 to P2 million.
- Loans will carry a maximum term of seven years with an annual interest of 7.5%, which is reviewable annually.
Priority investments and industries under the program include franchising, health care, tourism and agribusiness, Mr. Del Rosario said.
Landbank president and chief executive officer Gilda E. Pico said that Landbank approved P8.3 million worth of loans for 12 OFWs under the program.
She pointed out that qualified projects are those that have a client base or solid target market and businesses that will at least generate an income of P10,000 every month.
The DBP-OFW Reintegration Program has a total loanable amount of P2 billion.