The state-run Land Bank of the Philippines (LandBank) has disbursed PHP2.68 billion in loans to overseas Filipino workers (OFWs) as part of the OFW Reintegration Program (OFW-RP), according to a statement released on Monday. The program, which is a collaborative effort with the Overseas Workers Welfare Administration, aims to assist OFWs in starting businesses in the Philippines as an alternative to working abroad.
As of March 2024, LandBank has approved these loans for 1,504 borrowers under the OFW-RP, which allows eligible OFWs to obtain loans ranging from PHP100,000 to PHP2 million for individual borrowers and up to PHP5 million for groups, at a fixed interest rate of 7.5 percent per annum.
The loans are intended for a variety of business ventures, including franchises, agricultural projects, construction, rental services, trading businesses, and transportation services. The terms of the loans vary, with short-term loans payable within a year and term loans based on cash flow but not exceeding seven years, including a grace period of up to two years on the principal.
LandBank President and CEO Lynette Ortiz emphasized the program’s role in supporting OFWs. “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,” Ortiz stated. “We hope to turn their hard-earned savings abroad into thriving businesses here in the Philippines for their families and beneficiaries,” she added.
