LAND BANK of the Philippines (LANDBANK) has approved P2.68 billion in loans to 1,504 overseas Filipino workers (OFWs) under the OFW Reintegration Program (OFW-RP).

The program, implemented jointly with the Overseas Workers Welfare Administration, aims to help returning OFWs pursue business opportunities in the Philippines as an alternative to overseas employment, LANDBANK said in a statement on Monday.

“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. We hope to turn their hard-earned savings abroad into thriving businesses here in the Philippines for their families and beneficiaries,” LANDBANK President and Chief Executive Officer Lynette V. Ortiz said.

Under the program, OFWs may avail of loans for working capital or to acquire fixed assets. Amounts range from P100,000 to P2 million with a fixed interest rate of 7.5% for a single proprietor borrower.

Meanwhile, a group of OFW borrowers may avail of a maximum of P5 million, also at 7.5%.

All loans are payable in one year.

Meanwhile, term loans of up to seven years will be approved based on project cash flows, inclusive of a maximum of two years grace period on the principal.

The OFW-RP funds business ventures like franchises, agricultural and non-agricultural production and marketing endeavors, construction projects, rental services, trading businesses, and transportation services, among others.

LANDBANK has also been facilitating the delivery of financial support under the social amelioration programs of the Department of Labor and Employment to support OFWs. — Aaron Michael C. Sy