Overseas Workers Welfare Administration loans, what is the OWWA meaning, are a perfect opportunity for seamen lend money for their needs. In this article, we’ll answer five FAQ about the OWWA loans. Hope, you’ll find yours here also!
Question #1: What are the main OWWA loan requirements?
OWWA loans are created for the business purposes, so the number of documents shouldn’t be a surprise for you. You should collect all the proofs that you are starting a business. Moreover, you should proof your solvency. In addition to this, you may also provide Barangay Clearance and find where to pay OWWA membership. In the most cases, you can do it in the embassy. Also, you need docs to legitimize your business. Collection of these documents in the most cases is time and efforts consuming. However, in the end, all of them significantly speed up the whole process.
Question #2: What if I don’t have any own property?
Any existing property under the name of an applicant is a mandatory condition when applying for the OWWA loan. This is a guarantee that all the payments will be made timely. This is the important requirement to get the loan and the presence of any collateral is mandatory even for OWWA loan without collateral. The question arises “What if don’t have any own property?” In this case, you should calm down and read carefully. First of all, you can use not only own property as a mortgage but also:
- Rental lease agreement;
- You can also use either Deed of Assignment or Purchase order;
- Your vehicle.
In addition to this, you should also note that you can apply for OWWA loan for OFW together with your co-borrower. This person will be a guarantee that each of the payments will be made.
Let’s take a pause and stop at the middle of our list. Prior to considering other answers, note that it is a business loan. It has its pros and cons and requires more documents than any other loan. . If you need lend money for your business you will hardly find a better option. But, if you need it for your personal purposes, you will be rejected. Check all conditions and peculiarities of this loan type and then decide to apply for it. In many cases, people are disappointed with the rejection because they didn’t sort out in the conditions of the loan.
Question #3: What if I need money for a house?
It was already mentioned above that the OWWA loans are created for business purposes only. In case if you decide to apply for this loan for purchasing (or construction) a house, what means for personal purposes, you will most likely be rejected. If you are aimed at the house construction/purchasing, it will be better for you to take another type of loan. The OWWA has its own advantages but not for the personal purposes.
Question #4: Can I apply for OWWA personal loan if I am working now?
For many seamen, this is a very important question. Remember once and for all, even if you are working in another country, you can apply for it. One of the important requirements is the presence of your OFW status. Only with the special certificate, you can apply for the OWWA in the Philippines. How to get this certificate if you are abroad? Find the Embassy in the country where you have a contract now to confirm your OFW status. When you come back to the Philippines, you have to get your OFW certificate. With the actual certificate of OFW, each seaman is able to apply for a loan in OWWA.
Question #5: What if I need more money than OWWA can offer?
In the majority of cases, the more means the better and for loans also. Nevertheless, in case of applying for the needed loan in OWWA office, you will not a higher money amount. Even if you can approve your solvency you will be rejected to get more than they can offer you. Each bank carefully examines each of the applicants and check all the peculiarities of their business. Basing on this info they calculate the exact money amount they can offer you.
If you are aimed at the developing your business or starting a new one, OWWA loan is a good idea. In other cases, you should check other options available to be sure that your application will not be rejected.