FOURTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES, )

Third Regular Session ) 10 FEA=© P38

SENATE
SB.No._ 3993

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 lose employment opportunities in foreign countries as Overseas
Filipino Workers due to the inability to raise the funds necessary to defer
placement fees or travel expenses therefor.

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.

FRANCIS G. ESCUDERO


FOURTEENTH CONGRESS OF THE =)
REPUBLIC OF THE PHILIPPINES —)
Third Regular Session )

10. FEB -9

PL 38

SENATE pe :
HECEAED RS .
$B.No. 8593

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:

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 ahd 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 shall 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


20

21

22

23

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