P2-M set for Mt Province OFWs loans

By Alpine L. Killa

BONTOC, Mountain Province – A total of P2 million is now available to be loaned out to Overseas Filipino Workers (OFWs) –applicants residing in Mountain Province who have completed requirements and documents but lack financial means to pay their placement fees.

Through the Provincial Overseas Employment Program Fund, the provincial government is  willing to lend money with minimal interest of five percent per annum payable in 12 monthly installments starting one and a half month after the overseas worker’ arrival in the country destination.

A three percent administrative cost is also deducted immediately from the loaned amount. Laire B. Ligligen of the office of the governor said that the amount to be loaned by an applicant is dependent on the placement fee set by the placement agency and the country destination.

Thus, the amount can range from P60, 000 to P150, 000.

An applicant must have a valid work contract for working abroad, visa for country destination and must be willing to complete and sign application form, promissory note, memorandum of agreement and other documents related to the loan.

To ensure the effective implementation of the program, an applicant must have at least two qualified co-makers who are permanent employees of the provincial government. They will sign a MOA with the provincial government represented by the governor.

Under the MOA, co-makers as the guarantors of the borrower for the payment of the loan agree that the obligation shall be deducted from their monthly salary for a period of 12 months or until the loan shall have been fully paid if the borrower fails to pay his/ her obligation.

Since its inception in 2011, the program has now catered to 257 individuals who are now working as nurses, domestic helpers, factory workers, drivers and skilled workers in Hongkong, Cyprus, Taiwan, Kuwait, Dubai, Korea, Saudi Arabia, Russia, Canada, Poland, Libya, Hawai, Singapore, United States of America, Japan, Malaysia, New Zealand, Europe and Germany. Of the total, 210 are females and 47 are males. 

With the very minimal loan interest instead of availing loan to agencies offering very high interest, 18 of the OFWs who loaned under the program have applied for re-loans after their work contract had ended.