The House of Representatives of the Philippines had recently approved the third and final reading of the bill that seeks to support overseas Filipino workers by providing them with loan assistance.

What is the Overseas Workers Credit Assistance Act?

House Bill 4985, also known as the Overseas Workers Credit Assistance Act, aims to finance overseas Filipino workers family by providing a loan which they can use to pay all the pre-employment processing costs for the OFW to work abroad.  This will ease the problems left by OFWs when they’re on overseas jobs and will assure that their remittances will be enjoyed fully by the family.

Where can the credit assistance loan be availed?

The OFW credit assistance loan is to be given by the Overseas Workers Welfare Administration or OWWA.

How much is the OFW credit assistance?

OFWs may borrow a total amount of P50, 000 from OWWA to finance the expenses of their family on the first months of absence.

Who are qualified to avail of the OFW credit assistance from OWWA?

OFWs with valid employment contracts processed through licensed recruitment and manning agencies authorized by the Philippine Overseas Employment Administration (POEA) can avail the loan.

The credit assistance loan will be entered into by and between the OFW-borrower and OWWA.  The OFW’s next-of-kin will act as the co-borrower.

How will the OFWs pay the credit assistance loan?

Through accredited banking institutions, the OFW can pay the loan in 12 equal monthly instalments with an interest rate that should not be more than 6% per year.  The OFW should be responsible enough to pay for the loan through accredited banking institutions. There is also a provision on House Bill 4985 which orders the creation of an online payment system where OFWs may pay the loan through the internet, a year after its effectivity.

What will happen if the OFW fails to pay the credit assistance loan?

House Bill 4985 gives authorization for the Philippine Overseas Employment Administration (POEA) to withhold issuance of Overseas Employment Certificate or OEC and other exit permit or clearances for the OFW to be able to leave the Philippines and work abroad if he fails to pay the credit assistance loan from OWWA.

The Overseas Workers Credit Assistance Act was passed to support OFWs who had greatly helped the country’s economy with their remittances from all parts of the world for many decades.

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