OWWA Amnesty Program for Livelihood Loan Penalties

Penalties on delinquent loans are subject to condonation.
The condoned amount includes all penalties on delinquent loans, not the unpaid principal and interest.

Borrowers must pay at least 20% of unpaid principal and interests to qualify.
Payment may be made in full upon application or in staggered payments over a period based on the loan amount.
Payment periods vary from one month to six months depending on the amount of unpaid principal and interest.
The base amount excludes penalties and is used for computing the 20% required payment.
After initial payment and approval, the remaining balance is restructured according to borrower’s capacity and business cash flow.
Example provided details amortization schedule with monthly payments over one year.

Written application submitted to appropriate ROU.
Orientation on program guidelines for loan availee.
Selection of payment option for initial 20%.
Evaluation by Project Officer/Evaluator and submission to Regional Supervisor.
Upon approval, penalties are condoned but non-compliance cancels the condonation.
Restructuring of balance with maximum terms of three years based on unpaid principal/interest and borrower’s capacity.
Restructuring starts only after initial payment and official approval.
Current interest rates apply to new payment terms.
Promissory note for restructured loan must be notarized at the borrower's expense.

Borrowers who do not apply or fail to complete the Amnesty process face immediate foreclosure or cancellation.

Accounts already foreclosed but not consolidated in OWWA’s name may avail the program if foreclosure expenses and accrued interest are paid.
Foreclosure proceedings are suspended during the Amnesty Program's effectivity.
Unresolved cases at Regional Level may be elevated to the Office of the Administrator.

Loan collections stay with Regional OWWA Units to support livelihood development.
Collections from NLSF and ELF augment Direct Lending For Individual Entrepreneurs.
Collections from Non-collateralized accounts support Re-Entry Loan for Displaced Workers.

No processing or other fees are charged to applicants under the Amnesty Program.

Program covers loan arrears at the time of memorandum signing.
Available for one year from date of issuance or until the Executive Order’s implementation period ends.
Takes effect immediately upon publication compliance.