Who is Land Bank?
Land Bank or the Land Bank of the Philippines is a government financial institution that aims to promote countryside development as well as remain to be a financially viable bank for the Filipinos. While it earns from its operations on commercial banking, the profits are then used to support the developmental programs and initiatives of the bank.
The OFW Business Loan is one of the many financial products that Land Bank offers to businesses, but the only one offered to OFWs.
Land Bank OFW Business Loan
In collaboration with the Overseas Workers Welfare Administration (OWWA), Land Bank offers the OFW Reintegration Program (OFW-RP) to every Filipino abroad wising to pursue business opportunities in the Philippines.
OFWs can start their business as soon as possible without worrying about where to get the required capital through the help of a LANDBANK OFW Business loan. Interested borrowers may avail of this loan for working capital and fixed asset acquisition.
Business Loan Features
Loan Amount:
- Minimum Amount: Php100,000
- Maximum Amount:
- Php2 Million for single proprietorship
- Php5 Million for a group of OFWs (partnership, corporation, or cooperative)
Interest Rate: Fixed interest of 7.5% per annum
Loan Term:
- Short Term Loans: Maximum of one (1) year for
- Term Loan – dependent on cash flow, but not to exceed seven (7) years, including a maximum two (2) year principal grace period
For interested borrowers to take advantage of the OFW Reintegration Program (OFW-RP) product, they must first meet the eligibility criteria as indicated below:
- OFWs who have participated and have received OWWA certification in membership and capacity building programs
- Eligible Projects:
- Among the viable projects are franchising, agricultural and non-agricultural production and marketing, construction, rental, service, trading, and transportation.
- Contracts with the top 1,000 corporations
How to Avail of a LANDBANK OFW Business Loan
- Go to the nearest OWWA Office and undergo orientation / eligibility screening and processing / necessary training.
- Obtain the necessary OWWA certification to submit to Land Bank.
- For more information and an examination of the prepared project plan, go to the Land Bank Lending Center / Lending Unit closest to your home or business address.
Furthermore, those who wish to apply for the OFW Reintegration Program may call Land Bank’s customer service at (02) 8-405-7000 or at PLDT Domestic Toll-Free 1-800-10-405-7000.
Conclusion
The financial product that Land Bank is willing to provide to every aspiring Filipino entrepreneur no matter where they are is indeed a great help, particularly to many OFWs who have been experiencing financial challenges since the pandemic. The opportunity provided by Land Bank OFW-RP not only allows OFWs to have an alternative for their overseas employment but also allows them to experience the advantages of exploring business opportunities as well as owning a business.