Lawmakers pass OFW loan scheme bill

MANILA, Philippines - A bill granting credit assistance to overseas Filipino workers (OFWs) has been approved on third reading at the House of Representatives.Under the bill, an OFW who has a valid contract as certified by the Philippine Overseas Employment Administration (POEA) may get a P50,000 loan from the Overseas Workers’ Welfare Administration (OWWA), for living expenses of dependents before starting work abroad.Payments will be through bank transactions with simple and easy loan terms.A bank account must be opened under the name of the OFW or a member of the immediate family as co-borrower. Monthly remittances of salaries abroad will be deposited, and repayments deducted, from this accountThe loan will be granted and released to the contract worker by the OWWA upon the submission of an employment contract, a plane ticket, and a certification that a bank account had been opened. It will be covered by loan redemption insurance from the Government Service Insurance System, premiums for which must be paid by the applicant OFW.The loan is to be paid in 12 monthly installments at an interest rate of not more than 6% per annum. The OFW must execute authorize the bank to withhold the monthly loan amortization from remittances.Failure to pay the loan and or any violation of the terms of agreement could mean a ban on future overseas employment