Returning workers get P2b

State-owned Land Bank of the Philippines and Development Bank of the Philippines have committed P2 billion in loans to help returning migrant Filipino workers start their own businesses.

The amount is bankrolling the OFW Reintegration Program of the Overseas Workers Welfare Administration, which has initially benefitted 12 returning workers.

Land Bank said it approved P8.3 million in loans 12 returning workers in Bulacan, Pampanga, Zambales, Batangas, Iloilo, Bacolod, Cebu, Bukidnon, Davao and Pasay.

Land Bank’s entire contribution to the program is P1 billion while DBP committed the same amount. The program aims to provide economic opportunities to returning workers affected by political crises in the Middle East and other countries seriously stricken by natural calamities.

Among the initial loans that Land Bank approved were a P2-million working capital requirement for an existing music school and another P2 million for a proposed business in agri-vet supplies trading.

Other approved loans were a P1-million business in Nuat Thai Foot and Body Massage; a P500,000 dental laboratory; P400,000 each for businesses in LPG Gas Trading and a fitness center; P300,000 each for palay trading, and an internet café business; and P1.4 million.

“We are glad to help our OFWs start their own businesses and engage in market-led economic activities,” said Land Bank president and chief executive Gilda Pico.

Land Bank offers a range of loan products, including project modules such as bangus in bamboo cages, tilapia culture in earthen pond, hog fattening project and native chicken project.

The project modules will provide borrowers information on investment requirements and projected monthly income for the projects.

Under the program, qualified workers may borrow from P300,000 to as much as P2 million at 7.5 percent interest per annum payable within one year or a maximum of seven years, depending on the loan project.

Land Bank said it would extend loan up to 80 percent of the total project cost, with 20 percent representing the equity of the borrower.

Eligible projects are those with confirmed market and contracts that will generate an income of at least P10,000 every month.

Qualified borrowers are OWWA-certified workers who can no longer work overseas and who now want to engage in business and need financing assistance for working capital and fixed asset acquisition their preferred business.–Roderick T. Dela Cruz, Manila Standard Today