General Policies
- Coverage: Only displaced MROs with at least one OWWA contribution are eligible.
- Amount/Charges: Maximum loan amount is ₱21,000 per beneficiary.
- An administrative handling fee of 4% applies to the loan principal.
- Penalty of 1% per month for late payments.
- Terms of Payment: Repayment begins after a 4-month grace period post-course completion.
- Repayment is in 10 equal monthly installments.
- Default on 3 consecutive installments immediately accelerates the loan.
- If the borrower stops schooling for any reason, loan repayment starts after 2 months from stoppage.
- No deferment of repayment is allowed.
- Borrowers must submit official grades within 1 week after graduation.
Documentary Requirements
- Seaman's service record book or proof of OWWA contribution.
- Proof of being an MRO (via seaman's book or contract).
- School registration form with assessment.
- Co-makers documents: payment guarantee, income tax return/withholding tax certificate or Certificate of Employment with office ID.
- Co-maker must have a minimum annual income of ₱60,000.
- Accomplished application form.
Application Procedure
- Manpower Development Benefits Department (MDBD) evaluates the credentials.
- Training Assistance Division (TAD) issues application forms to qualified applicants.
- TAD Receiving Officer reviews submitted documents.
- TAD Officer-in-Charge recommends approval.
- MDBD Officer-in-Charge makes final approval or disapproval.
Loan Releases
- Loan funds are paid directly to the educational institution.
- 50% released at the start of classes.
- Remaining 50% released one month before course completion.
- Release of final 50% contingent upon submission of a certificate confirming satisfactory course completion.
Loan Payments
- Payments made directly to OWWA.
- Accounting Division issues payment orders.
- Cash Department Collection Division issues official receipts upon payment.
Program Management
- MDBD-PPO manages pilot testing and monitors needs of displaced MROs.
- Upon program development, the loan will be regularized unless terminated.
Effectivity
- The Memorandum of Instruction takes effect immediately upon issuance (June 1, 1999).