REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No, 8390

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

‘The inability to muster enough funds to defer placement fees or travel expenses is one
of the primary reasons why many Overseas Filipino Workers lose out on lucrative
opportunities that await abroad. Plenty of graduates of the Technical Education and Skills
Development Authority and other learning institutions go on to pursue work abroad and as
such, they are no stranger to this problem.

In light of the abovementioned, this bill proposes for a special loan granted to
graduates of TESDA and other learning institutions credited by CHED with an approved
overseas contract. It is this representation’s desire to provide the much needed credit facility
for our graduates, so that they may be able to afford the cost of pursuing employment
overseas

In view of the foregoing, approval of this bill is earnestly sought.

Representative
Magdalo Para sa Pilipino Party-List


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

8390

House Bill No.

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
PROVIDING A SYSTEM OF EXTENDING NO-CALLATERAL, 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 provisions 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 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 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 portion or provision of this Act is declared
unconstitutional, the provision 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.- This Act shall take effect after fifteen (15) days following the
completion of its publication either in the Official Gazette or in newspaper of general
circulation in the Philippines.

Approved,