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2 - OFW Reintegration Program Generic Presentation

This document outlines the OFW Reintegration Program (OFW-RP) jointly run by OWWA and LANDBANK. The program aims to provide enterprise and investment opportunities for OFWs to encourage investing in the Philippines rather than working abroad. It offers loans from P300,000 to P2,000,000 for viable small business projects, with an interest rate of 7.5% annually. Eligible OFWs can avail of the program by attending an OWWA orientation, securing an OWWA certification, and applying for a loan at their nearest LANDBANK branch by presenting required documents like a business plan.

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Reintegration Cagayan
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65 views

2 - OFW Reintegration Program Generic Presentation

This document outlines the OFW Reintegration Program (OFW-RP) jointly run by OWWA and LANDBANK. The program aims to provide enterprise and investment opportunities for OFWs to encourage investing in the Philippines rather than working abroad. It offers loans from P300,000 to P2,000,000 for viable small business projects, with an interest rate of 7.5% annually. Eligible OFWs can avail of the program by attending an OWWA orientation, securing an OWWA certification, and applying for a loan at their nearest LANDBANK branch by presenting required documents like a business plan.

Uploaded by

Reintegration Cagayan
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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OFW

Reintegration
Program
(OFW – RP)
PRESENTATION OUTLINE
• Background
• Objectives
• Program Features
• Lending Parameters
• How to avail of a loan
BACKGROUND
• OFWs fuel the Philippine economy
• Unstable condition of OFWs due to social
unrest and calamities overseas
• Need for a reintegration program for OFWs to
give them sustainable economic opportunities
• OWWA and LANDBANK forged a partnership
to provide sustainable enterprise and
investment opportunities for OFWs
OBJECTIVES
• To provide enterprise and investment
opportunities to OFWs
• To encourage OFWs to invest in the
Philippines rather than work abroad
• To make the projects of OFWs viable and
sustainable
LENDING TERMS & CONDITIONS
• Eligible Borrowers
– OFWs certified by OWWA on membership and capacity
building program attended
– Including those who are presently residing in the Phils.,
about to leave the Phils. or presently working abroad
– For those working abroad or about to leave the Phils., an
SPA SPA.doc shall be executed in favor of the following:
- Spouse (if legally married)
- Parents (if single)
- Children/Parents (if widow/widower)
LENDING TERMS & CONDITIONS
• Eligible Projects
– Viable projects, preferably those with confirmed market
or Purchase Order, that will generate a net income of at
least equal to the poverty threshold set by NEDA.
– Projects linked with Food Supply Chain

• Eligible Loan Purposes


– Working Capital
– Fixed Asset Acquisition
LENDING TERMS & CONDITIONS
• Project Cost Sharing PROJECT COST
SHARING.xls
– Borrower’s Equity – minimum of 20% of the Total Project
Cost (TPC)
– Loan – Maximum of 80% of the TPC
*All items/costs required by the project should be properly included,
and properly identified if to be funded by equity or by LBP Loan.
Only assets that are used in the project can be considered as equity.
• Loanable Amount
– Shall depend on project needs and equity participation of
the borrower:
• Minimum – P300,000
• Maximum – P2,000,000
LENDING TERMS & CONDITIONS
• Interest Rate
– Short Term Loan and Term Loan – 7.5% per annum fixed
for the duration of the loan.
• Loan Repayment AMORTIZATION SCHEDULE.xls
– Short Term Loan – maximum of 1 year
– Term Loan – based on cash flow, but not to exceed 7
years, inclusive of maximum of 2 years grace period on
principal
– Penalty Rate of 24% per annum
LENDING TERMS & CONDITIONS
Loan Security
– Post Dated Checks
– Any or a combination of the following: Object of
Financing, assignment of proceeds of market
contracts/receivables/inventories, REM/CM
• Documentary Requirements
CHECKLIST OF DOCUMENTS - EDT.doc
Pre-Processing Requirements
– OWWA Certification that the borrower is a bonafide
overseas worker, completed Capacity Building Program,
and has credit history (if any)
LENDING TERMS & CONDITIONS
• Documentary Requirements
Pre-Processing Requirements
– Special Power of Attorney (SPA), if applicable
(For working abroad, SPA must be duly authenticated by
the Consul)
– Duly Fill-Out Application Form (w/ SAL)
– Business Plan (including Financial Projections, Source of
Equity, List of Suppliers/ Markets or Buyers and Contact
Numbers)
– Barangay Certification as to residency in a given address
– Sketch of place of residence
LENDING TERMS & CONDITIONS

• Documentary Requirements
Processing (For Existing Business)
– Income Tax Return for the past three (3) years
– Audited Financial Statement for the past three (3) years
– Latest Interim Financial Statements
LENDING TERMS & CONDITIONS
• Documentary Requirements
Processing
Loan Security Documents
– Post Dated Checks
Any or combination of the following:
– Assignment of Receivables
– Assignment of Inventories
– Assignment of Proceeds of Market Certificate
– Contract Growing Agreement
– Service Contract
– Purchase Order
– Real Estate Mortgage: Photocopy of Title,
Photocopy of Tax Declaration,
LENDING TERMS & CONDITIONS
• Documentary Requirements
Processing
Photocopy of RETR and Clearance, and
Photocopy of Location Map/ Vicinity Map
– Chattel Mortgage: Evidence/Affidavit of Ownership of
Existing Machineries/Equipment (e.g. OR/CR of vehicle)
For Construction/Repairs and Renovation:
– Cost Estimates / Building Plan and Specification / Bill of
Materials and Work Program / Building Permit
For Acquisition of Machinery/Equipment
– Price Quotation of Machinery/Equipment to be acquired
LENDING TERMS & CONDITIONS
• Documentary Requirements
Pre-Release Documents
– Mayor’s Permit
– DTI Registration
The following, only if applicable
– License to Operate (e.g. NFA, PCAB, BFAD, DOH, BFAR, NMIC)
– Proof of application/Payment/Availability of Franchise (Letter
from Franchisor)
– Franchise Agreement
– Franchise Certificate (e.g. LTFRB)
– Sanitary Permit
LENDING TERMS & CONDITIONS

• Documentary Requirements
Pre-Release Documents
– Original Copy of Collateral Documents
(e.g. TCTs, OR/CR, Post Dated Checks)
– Insurance Policy/Coverage (thru LBP Insurance Brokerage
and assigned in favor of LBP)
– Contractor’s All Risk (CAR) for building to be constructed
(thru LBP Insurance Brokerage)
– Environmental Compliance Certificate
LENDING TERMS & CONDITIONS
• Fees and Charges (that can be deducted from the loan proceeds or
paid prior to any release)
– Processing / Application Fee – P2.000.00
– Appraisal / Inspection Fee – P1,000 per title; P500 per
inspection/progress monitoring (if applicable)
– Handling Fee – 1% based on Loan Amount
– Commitment Fee – ½% based on Unavailed Amount
– Documentary Stamp
Other Expenses (if applicable)
– Insurance (Property / MRI)
– Mortgage (e.g. ROD, LTO, BIR)
LENDING TERMS & CONDITIONS
• Mode of Releases
For Working Capital – shall be released (credited) to the
borrower’s deposit account with an LBP Branch
For Acquisition of Equipment/Machinery – shall be released
(credited) directly to the supplier’s deposit account with
an LBP Branch
For Construction Project/s - shall be on a staggered basis
depending on the percentage of completion of the
project/s as validated by the Bank’s Appraiser
HOW TO AVAIL OF A LOAN
1.Visit the nearest OWWA office and
undergo orientation/necessary
training
2.Secure the required OWWA
Certification for submission to
LANDBANK
3.Visit the nearest LANDBANK Lending
Center or LANDBANK Branch for more
information and evaluation of project
proposal
THANK YOU !

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