LandBank approves at least P1 billion loans for OFWs
The Land Bank of the Philippines (LandBank) said it approved loans worth 1.89 billion pesos for 1,297 borrowers under the Philippine Workers Abroad (OFW) Reintegration Program (OFW-RP ).
In a statement, the bank said of the total amount, 1.84 billion pesos had been released at the end of May 2021.
Implemented in conjunction with the Overseas Workers Welfare Administration (OWWA), the mechanism provides credit assistance to OFWs to seek business opportunities as an alternative to overseas employment. The bank has allocated 1 billion pesos to the program.
LandBank said loan applications under the OFW program have increased since the start of the 2019 coronavirus disease pandemic (Covid-19), with total approved loans reaching P 219 million for 176 borrowers as of March 15, 2020. as of May 31, 2021.
âWe understand the financial difficulties facing many OFWs due to the ongoing pandemic that has affected deployments overseas. Through the OFW Reintegration Program, LandBank works closely with OWWA to help OFWs acquire their own businesses as an alternative source of income. Said Landbank President and CEO Cecilia Borromeo.
Under OFW-RP, eligible OFWs can benefit from loans for working capital or the acquisition of fixed assets of a minimum amount of 100,000 pesos and up to 2 million pesos for a borrower at sole proprietor, and 5 million pesos for a group of OFW borrowers, with a fixed interest rate of 7.5% per annum.
Short-term loans under the program are repayable for up to one year, while the term of term loans will be based on cash flow but should not exceed seven years, including a maximum grace period of two. years on the principal.
LandBank has also supported OFWs by facilitating the effective provision of financial support under the Social Improvement Programs of the Department of Labor and Employment (DOLE).
As of May 28, 2021, he had transferred a total of 3.06 billion pesos to DOLE regional accounts for distribution to beneficiaries under the Abot Kamay ang Pagtulong for OFWs program and the department’s Tabang OFW program.
The Overseas Filipino Bank (OFBank) was also launched last year to provide a safe, convenient and responsive banking experience for OFWs and their beneficiaries.
A wholly-owned subsidiary of LandBank, OFBank is the first branchless digital bank in the country after obtaining a digital banking license from the Monetary Council of Bangko Sentral ng Pilipinas on March 25.