FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 247~ 
) 
) 
) 
Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
The provisions of Article XIII, Section 3 of the 1987 Constitution provides 
that the State shall afford full protection of labor, local and overseas, organized 
and unorganized, and promote full employment and equality of employment 
opportunities for all. 
All over the world, the hard-earned dollars of our Overseas Filipino 
Workers (OFWs) play a vital role in pump-priming our economy to levels that 
have allowed us to achieve growth as a nation, and industrialization along with 
modernization as a country. 
As such, this proposed measure seeks to provide credit facilities to OFWs 
which may be availed even before the departure of the OFW. Any OFW who has 
a valid contract, as certified by the POEA, may avail of a loan in the amount not 
exceeding One Hundred Thousand Pesos (Php100,OOO.OO) from the OWWA to 
defray the living expenses of his/her family during the first few months of his/her 
absence as well as other expenses incurred in his/her pre-employment. The 
payment of said loan shall be through bank transactions with Simple and easy 
terms. 
This intervention in the form of credit assistance to our OFWs is being 
proposed in order to provide safety nets to the millions of OFWs who venture to 
other countries to support their families. 
Considering its beneficial implication and the need to alleviate the poor 
plight of OFWs, the immediate passage of this measure is earnestly sought. 
£") 
MANC-UTO" M. LAPI!,J 
Senator 
r . 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 2473 
) 
) 
) 
Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
ESTABLISHING A CREDIT ASSISTANCE PROGRAM FOR OVERSEAS 
FILIPINO WORKERS AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 
1. 
Short Title. - This Act shall be known as the "Overseas 
Workers Credit Assistance Act of 2010". 
SEC. 2. 
Declaration of Policy. - It is hereby declared a policy of the State 
to protect the interest of the overseas workers by providing them access to credit 
facilities even before their departure. 
SEC. 3. 
Loans. -
An overseas contract worker with a valid contract 
• 
through/from an accredited employment of the Philippine Overseas Employment 
Administration (POEA) may avail of a loan in the amount not exceeding One Hundred 
Thousand 
pesos 
(Php100,OOO.OO) 
from 
the Overseas Workers and Welfare 
Administration (OWWA) to defray the living expenses of his/her family during the first 
months of absence as well as recruitment expenses including placement fees, 
documentation costs and plane tickets: Provided, That anyone of the members of 
his/her family not otherwise disqualified by law shall participate in the loan as co-
borrower and execute necessary documentation to that effect: Provided, further, That 
the loan shall be granted and released by the OWWA upon proper submission of the 
following documents, duly certified to in writing by the recruitment agency or direct hirer 
as to their authenticity and properly certified/verified by the POEA: 
(a) Employment contract; 
(b) Plane ticket; and 
( c) Bank Account. 
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The loan shall be entered into by and between the overseas workers and 
OWWA, with the next-of-kin as the guarantor. The loan shall be covered with loan 
redemption insurance from the Government Service Insurance System (GSIS), the 
premium of which shall be paid by the applicant overseas worker. 
SEC. 4. 
Establishment of Bank Account. - Overseas workers availing of 
the loan mentioned in the preceding section shall establish a bank account with any 
domestic or foreign banking institution duly authorized to do business in the Philippines, 
in the name of the overseas worker nimselflherself and/or member of his/her immediate 
family designated as co-borrower to the loan wherein the proceeds of the loan shall be 
released and credited, and where monthly remittances of salaries and wages abroad 
and payments on the loan shall be made. It shall be the obligation of the overseas 
worker-borrower to remit his earnings abroad only through the said bank account. 
SEC. 5. 
Payment of Loan. - The loan shall be paid in twelve (12) equal 
monthly installments at a preferred interest rate not to exceed six percent (6%) per 
annum through the bank account to be established under the immediately preceding 
section. For this purpose, the applicant shall execute the necessary authority for the 
bank to withhold the monthly loan amortizations from his remittances. 
SEC. 6. 
Sanctions. - Failure to pay the loan and/or violations of the terms 
imposed herein shall be sufficient ground to bar the defaulting overseas worker-
borrower from future overseas employment. 
SEC. 7. 
Implementing Rules and Regulations. - The OWWA shall issue 
rules and regulations for the effective implementation of this Act. 
SEC. 8. 
Appropriations.- The amount needed to implement the provisions 
of this Act shall be appropriated out of the Overseas Welfare Fund. 
SEC. 9. 
Separability Clause - If any provision or part hereof is held invalid 
or unconstitutional, the remainder of the law or the provision not otherwise affected shall 
remain valid and subsisting. 
• 
SEC. 10. 
Repealing Clause. -
Any other provisions of law or rules and 
regulations inconsistent with the provisions of this Act are hereby repealed, amended or 
modified accordingly. 
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SEC. 11. 
Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
Approved, 
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