Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

17" CONGRESS,
First Regular Session
3
HOUSE BILL NO. 32

HOUSE F REPRESENTATIVES
RECEIVCD

pare 30 duet 2016

TIME 90

| BY! / eal Gi
REEISTRATION UNIT |

BILLS AND INDEX SERVICE

Introduced by REP. EVELINA G. ESCUDERO.

EXPLANATORY NOTE

The inability to raise funds to cover the cost of processing applications hinders many
of our graduates ‘of various courses offered by the Technical Education and. Skills
Development Authority (TESDA) and other learning institutions to secure employment in

foreign countries.

In this view, 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,

Hence, the approval of this bill is earnestly sought.

/

heated

EVELINA G, ESCUDERO,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17" CONGRESS,
First Regular Session

HOUSE BILL NO.__ 823

Introduced by REP. EVELINA 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. Ail 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 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).

SEC, 2. Each Loan shall be payable within a period not to exceed five (5) years and
shali be in an amount not to exceed One Hundred Thousand Pesos (PhP 100,000) at the
option of the graduate concemed: 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.”

SEC. 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.

SEC. 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.



SEC. 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.

SEC. 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

SEC. 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.

SEC. 8. Repealing Clause. ~ All laws, decrees or rules inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SEC. 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,