LAND Bank of the Philippines has opened a P3-billion credit window for overseas Filipino workers (OFWs) who would apply for housing loans.

Bank officials said they have started offering the Bahay Para sa Bagong Bayani program, or housing of the new hero, in mid-July.

LandBank senior vice president for institutional banking and subsidiaries sector Cecile Borromeo said the housing credit window offers a 20-year payment period. The interest rate can be fixed up to 10 years. The rate fixing will be determined at prevailing market rates at the Philippine Dealing and Exchange (PDEX).

“In our survey, we found out that most banks can fix rates up to five years. So this is the special feature of this loan, that the rate can be fixed up to 10 years,” Borromeo said.

LandBank president and CEO Gilda Pico said the bank is currently offering loans through the credit window exclusively to OFWs at a rate of 8.5 percent, against 9 percent for its regular housing-loan program.

As of Monday, the rate for a 20-year loan at PDEX is above 10 percent.

Borromeo expressed confidence that the bank will be able to sustain the credit window despite the slowdown in the global economy, which is expected to affect the paying capacity of OFWs.

“We are protected by the collateral; but of course, we give consideration to the capability of the OFW to pay. OFWs often renew their contracts every two years, some of them have stayed in their host countries for 20 years,” she said.

Borromeo said the bank has forged arrangements with several real-estate developers in the country.

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