TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
s. No.
,, , ■
of i',;e ' ■'
25 AUG-5 P2:05
RfCEiVED BV
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
ESTABLISHING A CREDIT ASSISTANCE PROGRAM FOR OVERSEAS 
FILIPINO WORKERS
EXPLANATORY NOTE
Overseas Filipino Workers (OFWs) are widely recognized as modern-day heroes 
for their significant contribution to the Philippine economy through remittances that 
support millions of Filipino families which help sustain economic growth. Despite their 
vital role, many OFWs face financial challenges, especially during the pre-deployment 
phase or in times of emergency.
At present, numerous OFWs are forced to borrow from informal lenders with 
high interest rates just to cover the costs of placement fees, training, documentation, 
and travel. This often leads to a cycle of debt even before they can begin earning 
abroad. Others who are returning home may struggle to access affordable capital to 
start businesses or reintegrate economically.
Under this measure, a credit facility for the benefit of OFWs is to be established. 
An OFW with a valid employment contract may avail of a loan of not more than 
P50,000 from the Overseas Worker and Welfare Administration to defray the living 
expenses of his family during the first three months, as well as recruitment expenses 
including placement fees, documentation costs and plane tickets.


This proposal will not only protect OFWs from financial exploitation but also 
promote financial literacy, sustainable reintegration, and inclusive economic growth. 
It is also a concrete step toward recognizing the sacrifices and responding to the needs 
of migrant workers.
In view of the foregoing, the early passage of this bill is earnestly sought.
NGGOY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
s. NO. £95
25 AUG -5 P2--05
RECEIVED BY.__
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
ESTABLISHING A CREDIT ASSISTANCE PROGRAM FOR OVERSEAS 
FILIPINO WORKERS
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "Overseas Filipino
2 
Workers Credit Assistance Act'.
3 
Sec. 2. Declaration of Policy. - Consistent with the State policy that the State
4 
affirms labor as a primary economic force and that it shall protect the rights of workers
5 
and promote their welfare, it is hereby declared that the government and its
6 
instrumentalities must promote and carry out programs geared towards advancing the
7 
interest of the Overseas Filipino Workers (OFWs) by providing them access to credit
8 
facilities even before their departure and/or deployment.
9 
Sec. 3. Loans. - An OFW with a valid employment contract, as certified by the
10 
Philippine Overseas Employment Administration (POEA), may avail of a loan of not
11 
more than Fifty thousand pesos (Php50,000.00) from the Overseas Worker and
12 
Welfare Administration (OWWA) to defray the living expenses of his family during the
13 
first three (3) months of absence, as well as recruitment expenses including placement
14 
fees, documentation costs and plane tickets: Provided, That any one of the members
15 
of his family not otherwise disqualified by law shall participate in the loan as co-
16 
borrower and execute necessary documentation to that effect: Provided, further, That
17 
the loan shall be granted and released by the OWWA upon proper submission of the


1 
following documents, duly certified to in writing by the recruitment agency with
2 
corresponding authentication and properly certified/verified by the POEA:
3 
a) Employment Contract;
4 
b) Plane ticket; and
5 
c) Bank account.
6 
Sec. 4. Establishment of Bank Account. - OFWs availing of the credit assistance
7 
under this Act, who do not yet have a valid bank account in the Philippines, shall open
8 
a bank account in which payments for the loan shall be made.
9 
Sec. 5. Payment of Loan. - The loan shall be paid in twelve (12) equal monthly
10 
installments or more but not exceeding twenty-four (24) months at a preferred interest
11 
rate not to exceed six percent (6%) per annum through the bank account to be
12 
established under the immediately preceding Section.
13 
For this purpose, the applicant shall execute the necessary authority for the
14 
bank to withhold the monthly loan amortization from his remittances.
15 
Sec. 6. Implementing Rules and Regulations. - The OWWA, in consultation with
16 
organized labor groups and the relevant sectors, shall issue the implementing rules
17 
and regulations (IRR) for the effective implementation of this Act.
18 
The IRR shall include provisions that wiil address non-payment of loans
19 
provided under this Act and the corresponding penalties that may be imposed,
20 
collection and administration of loans, and other issues of significance relevant to this
21 
Act.
22 
Sec. 7. Appropriation. - The amount needed to implement the provisions of this
23 
Act shall be appropriated out of the Overseas Workers Welfare Fund.
24 
Sec. 8. Repealing Clause. - Any other provisions of law or rules and 24
25 
regulations inconsistent to the provisions of this Act are hereby repealed, amended,
26 
or modified accordingly.
27 
Sec. 9. Effectivity. - This Act shall take effect fifteen (15) days after its
28 
publication in the Official Gazette or in any newspaper of general circulation.
Approved,