LDPO is a joint program of the Overseas Workers Welfare Administration (OWWA) and the NLDC that aims to provide a credit facility for overseas workers and their dependents in starting and/or sustaining their businesses.

Target borrowers/clients

Active and former member-OFW of the OWWA

• OFW's immediate family members (only one family member per OFW)

1. For married OFW: spouse or children of legal age
2. For single OFW: parents, siblings, or children of legal age

• Legally organized group of OFWs (i.e. OFW partnerships/corporations, OFW organizations/ cooperatives/federations

Loanable amount

All loan applications are submitted, evaluated, and approved by the OWWA and the concerned MFI.

1. Collateral Loan Facility

   A qualified individual borrower can avail of a loan up to P200,000. A group of 5 or more OFW, legally organized and registered, can avail up to P1 million.

2. Non-Collateral Loan Facility

   An OFW borrower can avail of a loan up to P50,000.

Other LDPO services

• With savings component
• Capacity building
• Marketing assistance

Purposes of loan

The LDPO should be strictly used for the following:

• Short term operating capital of new or existing business/enterprise
• For permanent working capital for purchase of stock inventory or cost of franchise
• For asset acquisition or construction except purchase of land

Financial charges

a) Collateral Loan Facility

• Interest: 9% per annum to be paid on maturity of short term loan or amortized with principal in case of 3-5 year loans
• Service Fee: 4% per annum payable on loan release and at the start of every year based on outstanding balance
• Facilitation Fee: 3% one time payment to cover for CI/BI, appraisal, and processing expenses

b) Non-Collateral Loan Facility

• Subject to prevailing market rate being implemented by NLDC-accredited MFI

Forms of security

1. Collateral Loan Facility

   Loan shall be fully secured by collateral in the form of any of the following unencumbered assets/rights: real estate, chattel properties, stock inventories, and other types of collateral acceptable to the NLDC MFI partner.

2. Non-Collateral Loan Facility Deed of assignment of borrower's promissory notes

Requirements

• Proof of OWWA membership and contribution
• Endorsement letter from OWWA
• Business plan or project feasibility study
• Business permit/license
• Financial statements (for existing business)
• Collateral papers (for collateral loan)
• Documents to prove relationship with OFW member (for dependents)