Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

16" CONGRESS
First Regular Session

HOUSE BILLNO.__3738

Introduced by REP. EVELINA G, ESCUDERO-

EXPLANATORY NOTE

The inability to raise funds to cover the cost of processing applications hinders many of
our graduates of various courses offered by the Technical Education and Skills Development
Authority (TESDA) and other learning institutions to secure employment in foreign countries.

In this view, this bill proposes a special loan for graduates of TESDA and other
educational institutions duly accredited by the Commission on Higher Education with approved
overseas jobs contract.

Hence, the approval of this bill is earnestly sought.

EVELINA G. ESCUDERO


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

16" CONGRESS.
First Regular Session

' HOUSE BILL NO.

Introduced by REP. EVELINA G, ESCUDERO

AN ACT

PROVIDING A SYSTEM OF EXTENDING NO-COLLA1 AL, LOW-INTEREST
LOANS TO GRADUATES OF ANY COURSES OFFERED BY THE TECHNICAL
EDUCATION AND SKILLS AUTHORITY OR DULY ACCREDITED LEARNING
INSTITUTIONS WITH APPROVED OVERSEAS JOB CONTRACTS.

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

Section 1. All government and private banking and financial institutions are hereby
mandated to make the necessary provisions for extending no-collateral, low interest loans to
graduates of any courses offered by the Technical Education and Skills Authority (TESDA) or
any accredited learning institutions: Provided, That loans extended under this Act shall be used
exclusively for meeting the credit needs of such graduates with approved overseas job contracts:
only: Provided further, That in the case of private banking and financial institutions, the

provision of such loans

all in no way operate to prejudice their core banking functions:
Provided finally, That the term accredited learning institutions shall refer to such educational

institutions recognized and supervised by the Commission on Higher Education (CHED).

Section 2, Each Loan shall be payable within a period not to exceed five (5) years and
shall be in an amount not to exceed One Hundred Thousand Pesos (PhP 100,000) at the option of
the graduate concerned: Provided, That such extension of loans shall be consistent with safe and
sound banking practices as provided under Republic Act No.8791, otherwise known as, “The

General Banking Law of 2000.”

Section 3. The Director-General of TESDA or the Chairperson of CHED, whichever the

case may be, is hereby directed to enter into the necessary Memoranda of Agreement with the


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appropriate government and private banking and financial institutions to provide the terms and
conditions under which the loans referred to in this Act shall be extended to its intended

beneficiaries.

Section 4. The Monetary Board shall prescribe the interest rate on the loans to be granted.
under this Act: Provided, That the said interest rates shall be based on the lowest rate of interest

for similar credit accommodations prevailing at the time,

Section 5. All government and private banking and financial institutions which shall
extend the loans specified in this Act shall be granted development assistance incentives

provided by the Bangko Sentral ng Pilipinas under Section 46 of Republic Act No. 8791.

Section 6. The Director General of TESDA and the Chairperson of CHED, in
coordination with the Administrators of the Philippine Overseas Employment Administration
and Overseas Workers Welfare Administration and the Govemor of the Bangko Sentral ng
Pilipinas, shall promulgate the necessary rules and regulations for the effective implementation

of this Act.

Section 7. Separability Clause. — If any provision of this Act is declared invalid or

unconstitutional, the provisions not affected thereby shall continue to be in full force and effect.

Section 8. Repealing Clause. — All laws, decrees or rules inconsistent with the provisions.

of this Act are hereby repealed or modified accordingly.

Section 9. Effectivity Clause — This Act shall take effect fifteen (15) days after the

completion of its publication in the Official Gazette or at least two (2) national newspapers of
general circulation,

Approved,