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June 23, 2024

Ready to invest back home? LandBank extends P2.68 billion in loans to returning OFWs

The Land Bank of the Philippines (Landbank) approved P2.68 billion in loans for returning overseas Filipinos (OFWs) as of the end of March 2024.

This program, called the Overseas Filipino Workers Reintegration Program (OFW-RP), is a partnership with the Overseas Workers Welfare Administration (OWWA). These loans were disbursed to 1,504 OFW borrowers.

Landbank president and CEO Lynette Ortiz emphasized the program’s objective to provide returning OFWs with financial resources to start a business, offering a viable alternative to overseas employment.

“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,” she said.

The OFW-RP offers loans for working capital or fixed assets, ranging from P100,000 for individuals to P5 million for groups, with a fixed 7.5 percent annual interest rate

Short-term loans are due within a year, while term loans are based on cash flow, with a maximum of seven years and a two-year grace period for principal repayment.

The OFW-RP supports a wide range of businesses, including franchises, agriculture, production, construction, rentals, trading and transportation.