Migrant Workers Loan Guarantee Fund

Following is the excerpt from the RA 8042 – “SEC. 21. MIGRANT WORKERS LOAN GUARANTEE FUND. – In order to further prevent unscrupulous illegal recruiters from taking advantage of workers seeking employment abroad, the OWWA, in coordination with government financial institutions, shall institute financing schemes that will expand the grant of pre-departure loan and family assistance loan. For this purpose, a Migrant Workers Loan Guarantee Fund is hereby created and the revolving amount of one hundred million pesos (P100,000,000.00) from the OWWA is set aside as a guarantee fund in favor of participating government financial institutions.”

The OWWA’s Credit Program for OFWs (Loan Guarantee Fund under RA 8042 Section 21. Migrant Workers Loan Guarantee Fund)

Loan Guarantee Fund – a credit program not exceeding P40,000.00 for ready-to-leave newly hired OFWs (Pre-Departure Loan or PDL) and for emergency and other family needs of member-OFWs (Family Assistance Loan or FAL).

1. Pre-Departure Loan (PDL)

PDL is a loan window for ready-to-leave OWWA member-OFW which may be used to defray the cost of pre-departure requirements such as payment for medical examinations, subsistence allowance, clothing requirements, pocket money, and other pre-departure expenses.

2. Family Assistance Loan (FAL)

FAL is a loan window for family/dependent or vacationing OWWA-member OFW which may be used for any emergency purposes or family needs. The OFW shall have valid with at least six (6) months remaining of the employment contract.

Loan Features

* Loan Amount ——- Maximum P 40,000.00.
* Interest rate ——— 9 % per annum deducted in advance
* Term of Loan ——- payable in six (6) months to a maximum of 12
months or one (1) year
* Mode of payment – equal monthly amortization(net of interest, fees and
charges)
* Mode of Release – lump sum credited to the borrower’s ATM account
with DBP

Fees and Charges

1. Handling Fee ——————- P 314.01
2. Documentary Stamp ——— 60.00
3. Insurance Premium ———- 615.02
4. VAT/GRT Local Tax ———– 410.97
5. Penalty ———————-2% per month
6. Notarial Fee—————-for the account of the borrower

Documentary Requirements

For Pre-Departure Loan (PDL)

1. Duly accomplished application form
2. Passport / Seaman’s Book
3. Visa
4. Duly processed employment contract
5. Proof of OWWA Membership
6. Sketch of Residence

For Family Assistance Loan (FAL)

a. For Vacationing OFW or Balik-manggawa (same contract)

1. Duly accomplished application form
2. Passport / Seaman’s Book
3. Visa
4. Duly processed employment contract
5. Proof of OWWA Membership
6. Sketch of Residence
7. Confirmed plane ticket

b. For OFWs at jobsite

1. Duly accomplished application form
2. Passport / Seaman’s Book
3. Visa
4. Proof of OWWA Membership
5. six (6) 2×2 ID pictures
6. Marital consent / Authorization from OFW (pro-forma)
7. Barangay Certificate (pro-forma)
8. Two (2) valid identification cards (IDs)
9. Confirmed plane ticket

Basic Documentary Requirements for Co-Borrower

1. Proof of relationship to OFW (birth / marriage certificate)
2. Barangay Certificate
3. ID pictures
4. Three (3) valid IDs
5. Sketch of Residence

For Two (2) Co-Makers

1. Must be locally employed with annual income of not less than Php 80,000.00
* Certificate of Employment (indicating present address, basic salary, position, length of service and purpose of issuance)
* Latest Income Tax Return (ITR)
* Current Residence Certificate
* Two (2) valid IDs (company ID and any personal ID)
* Two (2) ID pictures

2. Must be self-employed with annual income of not less than P 80,000.00
* Latest Income Tax Return (ITR)
* Business Permit
* Current Residence Certificate
* Two (2) valid IDs (company ID and any personal ID)
* Two (2) ID pictures

Reminders:

1. Present original documents and submit 3 copies each.
2. Release and payment of monthly amortization of loans through DBP ATM Account.
3. Personal appearance of OFW, co-borrower and co-maker is required.

For further information and detail please visit at http://www.owwa.gov.ph
Other OFW benefits and programs can be seen here.