O5 WN 20%
8 ay

Republic of the Philippines Ve
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGESS
First Regular Session

4601

Introduced by Representative Giorgidi B. Aggabao

EXPLANATORY NOTE

We have often hailed our teachers as our unsung heroes yet to this day, this recognition
remains but an empty accolade.

Our teachers are easy prey to shark loans and in this age of electronic banking, the so-
called “payday” or “ATM” loans is now the common practice where the borrowers/debtors
pledge and surrender their ATMs to their creditors to secure payment of their loans every pay
period until the loan is fully paid, With a family to support and with such meager salaries ,
teachers have time and again fallen victims to high interest rates and exorbitant fees, to make
both ends meet.

This bill seeks to put a cap on the interest rates being charged by lending institutions as a
modest attempt to alleviate the economic plight of our public schoo! teachers.

It is high time that we put our teachers first and this bill aims to inch towards that
direction,

Hence, approval of this bill is eamest sought.

GIORGIDI B. AQGABAO


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City
SIXTEENTH CONG!
First Regular Session

* 4601

HOUSE BILL NO.

S

Introdu

ed by Representative Giorgidi Aggabao

AN ACT REGULATING THE RATE OF INTEREST ON LOANS EXTENDED TO.
TEACHERS AND FOR OTHER PURPOSES,

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

Section 1. Coverage.- This Act shall apply to all actively employed public school teachers,
whether full time or part-time, in all levels of education.

Sec. 2. Annual Percentage Rate .~ The rate of interest in consumer loans extended to covered
teachers under this Act shall not exceed six per cent per annum ( 6%) , including all fees and
charges, insurance and other ancillary products sold in connection with the consumer loan,

Sec. 3. Consumer Loans.-As used in this Act, consumer loans shall refer to any type of credit
or loan extended by any government or private banking and financing institutions, except that
such Joan does not include the following :

a. A residential mortgage, or

b. A Joan obtained in the course of purchasing a car or other personal property when the
loan is offered for the express purpose of financing the purchase and is secured by the
car or personal property bought.

Sec. 4. Incentives.-All lending institutions extending loans to covered teachers under this Act
shall be granted additional incentives under the development assistance incentive of the Bangko
Sentral ng Pilipinas under RA 8791,

Sec. 5. Implementing Rules and Regulations.-The Department of Education, the Commission
‘on Higher Education and the Bangko Sentral ng Pilipinas shall promulgate the rules and
regulations for the effective implementation of this Act.


Sec. 6, Separability Clause.-If any of the provisions of this Act is declared invalid or
unconstitutional, the provisions not affected thereby shall continue to be in full force and effect.

Sec. 7. Repealing Clause.-All laws, decrees or rules inconsistent with the provisions of this Act
are hereby repealed or modified accordingly.

Sec. 8. Effeetivity.- This Act shall take effect fifteen (15) days after its complete publication in
the Official Gazette or at least two (2) newspapers of general circulation.

Approved,