Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

15™ CONGRESS
First Regular Session

HOUSE BILL NO._ 292)

Introduced by REP. SALVADOR H. ESCUDERO Hi

EXPLANATORY NOTE

Many, if not all, graduates of various courses offered by the Technical Educati
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.

7 70 /
SALVADOR H. ESCEDERO LL

Representative
1* District, Sorsogon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

15™ CONGRESS
First Regular Session

HOUSE BILLNO.__ 2920)

Introduced by REP. SALVADOR H. ESCUDERO III

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 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
shall be in an amount not to exceed One Hundred Thousand Pesos (PRP 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.”

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 shal! 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,