SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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) 
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SENATE 
S.B.No. 
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JUL -1 
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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 (TESDA) 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 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. It is proposed that with the necessary credit facilities these graduates will 
be able to defray the cost of securing employment in foreign countries. 
Hence, the approval of this bill is earnestly sought. 
4& 
FRANCIS G. ESCUDERO 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
s.B.No.125 
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'13 JUL-l Pl:42 
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 enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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Sectio1l 1. All govemment and private banking and financial institutions are hereby 
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mandated to make the necessary provisions for extending no-collateral, low interest loans to 
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graduates of any courses offered by the Technical Education and Skills Authority (TESDA) or 
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any accredited learning institutions: Provided, That loans extended under this Act shall be used 
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exclusively for meeting the credit needs of such graduates with approved overseas job contracts 
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only: Provided further, That in the case of private banking and financial institutions, the 
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provision of such loans shall in no way operate to prejudice their core banking functions: 
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Provided .finally, That the term accredited leaming institutions shall refer to such educational 
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institutions recognized and supervised by the Commission on Higher Education (CHED). 
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Section 2. Each Loan shall be payable within a period not to exceed five (5) years and 
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shall be in an amount not to exceed One Hundred Thousand Pesos (PhP 100,000) at the option of 
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the graduate concemed: Provided, That such extension ofloans shall be consistent with safe and 
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sound banking practices as provided under Republic Act No.8791, otherwise known as, "The 
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General Banking Law of 2000." 
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Section 3, The Director-General ofTESDA or the Chairperson ofCHED, whichever the 
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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 
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conditions under which the loans referred to in this Act shall be extended to its intended 
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beneficiaries. 
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Section 4. The Monetary Board shall prescribe the interest rate on the loans to be granted 
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under this Act: Provided, That the said interest rates shall be based on the lowest rate of interest 
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for similar eredit accommodations prevailing at the time. 
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Section 5. All government and private banking and financial institutions which shall 
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extend the loans specified in this Act shall be granted development assistance incentives 
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provided by the Bangko Sentral ng Pilipinas under Section 46 of Republic Act No. 8791. 
lOSectiOlt 6. The Director General of TESDA and the Chairperson of CHED, in 
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coordination with the Administrators of the Philippine Overseas Employment Administration 
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and Overseas Workers Welfare Administration and the Governor of the Bangko Sentral ng 
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Pilipinas, shall promulgate the necessary rules and regulations for the effective implementation 
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of this Act. 
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Sectiolt 7. Separability Clause. - If any provision of this Act is declared invalid or 
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unconstitutional, the provisions not affected thereby shall continue to be in full force and effect. 
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Sectiolt 8. Repealing Clause. - All laws, decrees or rules inconsistent with the provisions 
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of this Act are hereby repealed or modified accordingly. 
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Sectiolt 9. EffectiVity Clause - This Act shall take effect fifteen (15) days after the 
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completion of its publication in the Official Gazette or at least two (2) national newspapers of 
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general circulation. 
Approved, 
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