FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF TI-IE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. No.2105 
Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
Many, if not all, graduates of various courses offered by the Technical 
Education and Skills Development Authority (TESDJ\) and other learning 
institutions loose opportunities in foreign countries as Overseas Filipino Workers 
due to the inability to raise the funds necessary to defer placement fees or travel 
expenses therefore. 
In that score, this blll proposes a special loan for graduates of TESDJ\ and 
other educational institutions duly accredited by the Commission on Higher 
Education with approved overseas jobs contract. It is proposed that with the 
necessary credit facilities these graduates will be able to defray the cost of 
securing employment in foreign countries. 
lIenee, the approval of this bill is earnestly sought. 


FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First J(egular Session 
) 
SENATE 
S. B. No. 2105 
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT 
PROVIDING A SYSTEM OF EXTENDING NO-COLLATERAL, 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 enllcted by lhe Serlllie lind lhe House of Represenllllives of the Philippines 
in Congress Ilssembled: 
Section 1. 
All government and private banking and financial 
2 
institutions are hereby mandated to make the necessary provisions for 
3 
extending no-collateral, low interest loans to graduates of any courses offered 
4 
by the'Technical Education and Skills Authority (TESDA) or any accredited 
5 
leari1ing institutions: Provided, That loans extended under this Act shall be 
6 
used exclusively for meeting the credit needs of such graduates with 
7 
approved overseas job contracts only: Provided further, That in the case of 
8 
private banking and financial institutions, the provision of such loans shall in 
9 
no way operate to prejudice their core banking functions: Provided finlllly, That 
10 
the term accredited learning institutions shall refer to such educational 
11 
institutions recognized and supervised by the Commission on Higher 
12 
Education (CI-IED). 
13 
Seclion 2. Each Loan shall be payable within a period not to exceed 
14 
five (5) years and shall be in an amount not to exceed One Hundred 
J 5 
Thousand Pesos (PhI' 100,000) at the option of the graduate concerned: 


Provided, That such extension of loans shall be consistent with safe and sound 
2 
banking practices as provided under Republic Act No.8791, otherwise known 
3 
as, "The General Banking Law of 2000." 
4 
Section 3. 
The Director-General of TESDA or the Chairperson of 
5 
CI-IEI,), whichever the case may be, is hereby directed to enter into the 
6 
necessary Memoranda of Agreement with the appropriate government and 
7 
private banking and financial institutions to provide the terms and conditions 
8 
under which the loans referred to in this Act shall be extended to its intended 
9 
beneficiaries. 
10 
Section 4. The Monetary Board shall prescribe the interest rate on the 
II 
loans to be granted under this Act: Provided, That the said interest rates shall 
12 
be based on the lowest rate of interest for similar credit accommodations 
13 
prevailing at the time. 
14 
Section 5. 
All government and private banking and financial 
15 
institutions which shall extend the loans specified in this Act shall be granted 
16 
development assistance incentives provided by the Bangko Sentral ng 
17 
Pilipinas under Section 46 of Republic Act No. 8791. 
18 
Section 6. The Director General of TESDA and the Chairperson of 
19 
CHED, in coordination with the Administrators of the Philippine Overseas 
20 
Employment Administration and Overseas Workers Welfare Administration 
21 
and the Governor of the Bangko Sentral ng l'ilipinas, shall promulgate the 
22 
necessary rules and regulations for the effective implementation of this Act. 
2 


Section 7. Separability Clause. - If any provision of this Act is declared 
2 
invalid 01' unconstitutional, the provisions not affected thereby shall continue 
3 
to be in full force and effect. 
4 
Section 8. Repealing Clause. - All laws, decrees or rules inconsistent 
5 
with the provisions of this Act are hereby repealed or modified accordingly. 
6 
7 
Section 9. Effectivity Clause - This Act shall take effect fifteen (15) days 
8 
after the completion of its publication in the Official Gazette or at least two (2) 
9 
national newspapers of general circulation. 
Approved, 
3