OFW loans in the Philippines

President Noynoy Aquino recently announced that he is instructing the Overseas Workers Welfare Administration (OWWA) to set aside P1 billion (US$23.5 million) as “reintegration fund” from which returning Overseas Filipino Workers (OFWs) can borrow money.

The goal is definitely noble but it is our hope that the loans program be managed efficiently so that it won’t be a losing venture for the government.  Some OFWs do need financial support upon their return and providing access to business capital is a big help towards convincing them to stay permanently.

However, proper administration of the loan program is a must, lest the government wants to again waste taxpayer’s money. At a time when budget cuts are prevalent, the government cannot afford to make this program contribute further to the ballooning deficit of the country.

Why do we have this concern? Because several times in the past, the government has proven itself to be not a good administrator of loans.

Pre-departure loans for OFWs

For instance, during Pres. Gloria Macapagal-Arroyo’s term, the OWWA had a pre-departure loans program for OFWs leaving the Philippines. More than P100 million was allocated to this program and in 2008, around P70 million was already released. However, only P21 million were collected — a mere 30% payment rate. OWWA decided to discontinue the program because OFWs were not repaying their loans.

‘Study Now, Pay Later’ Program

OFWs are not the only ones defaulting on their government-issued loans. A UNESCO report on Student Loans in the Philippines shows that 97% of students who took out loans in the 1990s via the “Study Now, Pay Later” program have not paid their loans. The culprit for the dismal 3% repayment rate, the UNESCO cites, is government inefficiency in loan collections. In fact as of 2009, more than P180 million worth of student loans remain unpaid and uncollected.

Proposal for Loan Administration

Our suggestion, therefore, is that this program be administered by a private entity, preferably a financial institution. Pres. Aquino said the Landbank of the Philippines and the Development Bank of the Philippines (DBP) will implement the program. That’s a good start.

We suggest that funding simply comes from OWWA — apparently they are cash-abundant with P10.2 billion in total assets — and this money is simply transferred to Landbank and DBP for program administration, with interest income perhaps remitted every year. The OWWA and other OFW-related agencies such as the POEA, DFA, and embassies SHOULD NOT have a hand in the screening and approval of applicants. Neither should they be involved in the disbursement of funds. At the most, they can merely act as marketing channels to promote the program.

We believe that Landbank and DBP should be solely tasked to handle OFW loans and should be expected to manage them the way they manage regular business or personal loans. Through this, the program can be run by experts familiar with loans processing and collections. Direct involvement of agencies who do not know about loans administration will simply lead to the failure of this promising program, as in the cases of the pre-departure and “Study Now, Pay Later” loans in the past.

Source: GMANews.tv; Commission on Higher Education (CHED); UNESCO

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44 thoughts on “OFW loans in the Philippines”

  1. I didn’t know we also have student loans here in the Philippines. It’s just sad it has a dismal repayment rate.

    I totally agree that they should let the experts administer the program. I just hope the OFWs who do apply for a loan and get approved will use it wisely for “good debts”, such as a business or income generating real estate, that can be a good income stream(hopefully a passive one) that can truly give them financial freedom in the long run, and also allow them to pay-off the loan. I guess it would not hurt if they also make financial literacy a part of the program.

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  2. Hi Jay, yes we actually have the Student Loan program in the Philippines until now. Sadly, though, very few students are aware of this and very few benefit from it. The reason is perhaps CHED thinks this program is not a priority. If they can’t manage this program properly, better reallocate the student loan budget to scholarships. That way, they won’t have to monitor the loans anymore but at the same time underprivileged students get to benefit without any obligations.

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    • hi sherlyn makaka avail din ang father mo sa BDO perosnal loan kahit pa nsa dubai sia..just read my messages above at nandun mga details on how to avail it at contact number ko for the business im sharing..salamat po..

      Reply
  3. I’m an OFW based in Riyadh,KSA. How can a modern day Hero like me, avail of the housing loan program for OFW’s from either Land Bank or DBP? I have contribute so much during GMAS’s term but didn’t receive any tangible benefit from Aroyo gov’t. I will have to see if finally I will during PNoy’s admin. Thank You.

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  4. I also agree about the full administration of Loans for OFW be done by either Land Bank or DBP.
    That includes the approval of loan applications. I am sure that if ever they approve my loan I can repay the loan up to the centavo and if ever that loan program will be fully operational, I will promote it to all my co-OFW’s where I am based.

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    • just read my post above if you want to avail BDO personal loan unsecured and join my business to acheive financial freedom..salamat po..

      Reply
  5. My brother is an OFW. He’s in Dubai for more than 3 years. He wants to loan money for the renovation of our house..How could he do that even without his presence here in the Philippines.?What lending institution here in the Philippines offers that kind of loan.

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    • hi BDO (bangco de oro)..alam ko ng papa lend sila ng huge amount on a purpose kahit un secured loan puede..tx me sa roaming number ko for more info..09491159861….at may ishi-share din me na business sayo na siguradong makakamit nio ang financial freedom ng brother mo basta masipg lang kayo..tnx!! bryle!!

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    • Study and compare first all the lending companies here in the Philippines. For you to do that this is the best site to visit.

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  6. pano po ba mag avail ng ofw loan sa land bank feb 2012 my finish contract at ayoko na bumalik d2 sa qatar,mag negosyo na lng ako dyan sa pinas.tnx more power

    Reply
    • hi rico taga qatar din ako now..im working here 6 years na..at alam ko BDO ang nag bibigay ng personal usecured loan for more details puede mo ko i tex sa roaming ko 09491159861.at may ishi-share din me na business sayo na kahit nasa pinas kana for good puede mo pa din siang ipagapatuloy.wla kang magiging boss at hawak mo pa ang oras mo…dont worry ituturo ko lahat sayo ang sistema ng negosyo..tnx!!  bryle38

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  7. hi mga kababayan ko at kapwa ko OFW kung interesado kayo sa OFW personal loan subukan nio sa bangco de oro (BDO) nag bibigay sila ng secured at unsecured loan kahit na nandito tayo sa ibang bansa puede tayo maka avail nun basta meron lang tayo mga requirements na katunayan talagang legitimo tayong OFW at may benificiary tayo na nasa pilipinas.siguradong makakatulong po eto sa lahat nang ating mga pangangailangang financial at mga planong pang negosyo.sa kabilang banda po meron din po ako ishi-share na business na siguradong mg aahon sa atin bilang isang OFW at mag bibigay ng financial freedom sa bawat pinoy .ang kailangan lang po ay sipag at determinasyong ma kamit natin ang mga pinapanagarap pa nating maabot sa ating buhay..bawat OFW po ay may kanya-kanayang kwento at pangangailangan kung bakit natin nilisan ang ating sariling bayan.  ngayon po ang negsyong ituturo ko sa inyo at mag babaliktad ng sitwasyun na tayo ay mananatili nalng sa sarili nting lupang sinilangan.para po sa karagdagang kalalaman tungkol sa BDO personal loan at sa negosyong aking ibabahagi sa inyo .maari nio po akong itex sa roaming number ko na 09491159861.mag pakilala lng po kayo at ibigay ang inyong telepono at ako po ang tatawag sa inyo..maraming salamat po at inaasahan ko po na mg tututulungan tayo sa pag kamit ng inyong mga pangarap sa buhay.ang inyo pong lingkod bryle 38..

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  8. LendingWanted.com website features blog entries that showcase personalities who have deliberately evaded the lenders to avoid settling their loan obligation.

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  9. hi ask ko lang po kc ang asawa ko po ay umuwi last dec 2011 galing korea  nakapag initial na po kmi sa negosyo namin ng 100k pero mataas po ang demand sa min….gusto ko po sanang mag avail ng loan para additional na puhunan pano po ba ng pwede kong gawin….

    Reply
  10. hi ako po si victor, isang 0FW ditu sa israel nais ko po sanang mag loan pampuhunan sa negosyo sana po mapahiram nyu po ako sana po sabihin nyo po kung anu ano po ang mga requirements na kailangan salamat po..  

    Reply
  11. hi ako poh c emery n may aswa poh n nsa taiwan ngaun…7months p lng poh at gipit poh tlga kmi nasi poh sana naming mag loan s ofw para pang negosyo ko d2 s pinas….pero dko poh alam kung paano….dhil s maliit nyang naipapadla at d poh tlga sapat kya naisip poh nmin mag loan….tnx

    Reply
  12. hi ako poh c emery n may aswa poh n nsa taiwan ngaun…7months p lng poh at gipit poh tlga kmi nais poh sana naming mag loan s ofw para pang negosyo ko d2 s pinas….pero dko poh alam kung paano….dhil s maliit nyang naipapadla at d poh tlga sapat kya naisip poh nmin mag loan….tnx

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  13. hi!! I”m ofw based in cyprus.puwede bang magloan?ang anak ko?22yrs old. na cya at complete requirement.di kasi cya na-aprove sa land bank”

    Reply
  14. good day, i am capt. cesar, a seaman, gusto ko sanang magloan para makapagpatuloy ako magtanim ng 50,000 na mahogany tree sa sarili kong lupa, at makapagstart ng virgin coconut oil production or processing. Magkano ba kaya ang allowed loanable amount kung ang monthly salary ay 310,000.00 pesos.
    Matatapos po ako sa contract ko sa june 08, 2012.

    Reply
  15. I have a daughter working at Emirates Airlnes. Just want to know how we can apply personal loan at BDO. she’s coming home by Aug. for her 2weeks vacation..what are the requirements? .

    Reply
  16. hi ako po si soliel, may i ask po kung pwede akong mag loan kasi po nag apply po ako for saudi then may visa na po ako hinihintay na lang ang contract., ang sa akin lang naman po ayokong umalis ng bansa ng walang iiwan sa aking pamilya., kahit sana maliit na halaga lang at madaling hulugan.,,thanks

    Reply
    • Here in Balikbayad we do not require collateral. The release of loan approve is 100% without any deduction. One day to process and next is the disbursal. Please check our website http://www.balikbayad.ph for more information. Thanks!

      Reply
  17. Dear Sir/Madam,

    Hi to all OWWA,POEA,DOLE and Government officer’s,that handle this Balik manggagawa loan,i just want to know,as an OFW since 1989 until now 2013,if,i can avail this Balik manggagawa OFW loan in How?
    Sir/Madam, i just want to know the Requirements to submit,
    how long it takes to process,i just planning next year to for good,to start a small business like fish pond and farming,i had a pond and farm but not enough capital to start on it,
    It’s a great privilege for me, if you can help me, about my capital to start a new life in our mother land,The Philippines.waiting for your reply.Thanks!
    Respectfully Your’s,
    Nenette Bermudes

    Reply
  18. hi po ako c dionisio m bueno isang ofw kasalukuyang nagtatrabaho d2 s qatar nais ko sanang umuwi n ng pinas t dun nlng ako magnegosyo ngunit kapus po s finacial nais ko sanang magloan o mangutang s owwa ano po ang mga requerments n dapat kong gawin sn po ako y inyong matulongan salamat po

    Reply
  19. I mentioned in my Rebbeca Van Dyck post, I headed over on the new Facebook campus to photograph CSO (Chief Security Officer) Joe

    Reply
  20. nag apply ako ng balik pinas program ng owwa ng seminar na ako isang araw tapos tatawagan na lang daw para malaman kung kailan ang training para makuha ung worth 10k na items for balik pinas but until now 2 mos. na walang reply ang owwa i think nakurakot na nila kc may attendance na pumirma kami afterr the seminar…. nagkasakit ako sa abroad kaya i try to get some help to owwa ….. pero useless …. corrorup talaga ang governo natin sayang lang binabayad ko sa owwa na almost 500 pesos every baba ko ng barko…..

    Reply
  21. whoah This Blog Is Great I Like Studying Your Posts. Stay Up The Good Work! You Recognize, ManyIndividuals Are Searching Round For This Information, You Can Help Them Greatly. adaptu

    Reply
  22. Mga OFW. Gusto nyo ba mag loan? Money loan ba hanap nnyo? apply kayo rito sa personal loan. Visit loansolution.ph for more information

    Reply

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