Owwa gives away P2.6-M in loan assistance to borrowers

Monday, January 30, 2012

THE Overseas Workers Welfare Administration (OWWA) in Davao Region has granted a total of P2.6 million to qualified borrowers under its loan program last year.

The loan program, launched in partnership with the Land Bank of the Philippines (LBP), started in June last year and has since been availed by parents or legal spouses whose family member is an Overseas Filipino Worker (OFW), whether an active or a former member of Owwa.

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Owwa-Davao Director Zenobia Caro said the amount borrowed is usually used to buy equipment, especially vehicles, to start up sustainable business of borrowers.

"The bank will be the one to purchase the vehicle for the borrower," Caro said while emphasizing that the vehicle to be purchased must be brand new as stipulated in the guidelines of LBP.

After Owwa identifies the applicant as qualified borrower, a business planning seminar is then conducted so that the borrower can make a business plan. The plan must contain an eligible project which can earn him at least P10,000 a month, which is as part of Owwa's requirement.

"Our intervention here is to provide training. During the training, we are expecting them (borrower) to come up with a business plan," Caro said.

The borrower must provide a sustainable business plan otherwise the loan cannot be granted, according to Caro.

The loan program can be availed at the amount ranging from P300,000 up to P2 million with an interest of 7.5 percent per annum.

So far, Owwa-Davao has already issued 155 certificates of trainings to the applicants and they were already endorsed to LBP. (Antonio I. Colina IV)