State-owned Land Bank of the Philippines (LandBank) approved a total of P2.68 billion in business loans to former overseas Filipino workers (OFWs) as of March.

LandBank said 1,504 borrowers benefited from its overseas Filipino workers Reintegration Program that enables them to continue earning incomes as entrepreneurs while also being physically present with their loved ones for better well-being.

“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,” LandBank president and chief executive officer Lynette Ortiz said.

“We hope to turn their hard-earned savings abroad into thriving businesses here in the Philippines for their families and beneficiaries,” she added.

Sole proprietors can borrow P100,000 to P2 million for their working capital or purchases of fixed assets.

Groups of former OFWs can secure P5 million with a fixed interest rate of 7.5 percent per annum.

Short-term loans are payable in one year, while long-term loans have a period of up to seven years.

LandBank said the loan program for repatriated OFWs supports a wide range of businesses, such as franchises, agricultural and non-agricultural production and marketing, construction, rental services, trading and transportation.

Partnering for borrowings

The bank added borrowers can partner and conduct trade with the country’s top 1,000 corporations to secure a loan.

In December last year, the Department of Migrant Workers (DMW) imposed mandatory repatriation of OFWs in Gaza as Israel continued to retaliate against Hamas, a Palestinian militant group that bombed the southern part of the country in October.

The DMW also requested OFWs in Lebanon to voluntarily return as Hezbollah, a Lebanese militia supporting Hamas, also launched attacks against Israel.

The government agency added only OFWs with still existing contracts with Israel-based employers can return there.