Senate Committee on Foreign Relations Chairman Sen. Erwin Tulfo has filed Senate Bill No. 1696 or the “OFW Pre-Employment Loan Assistance Act,” seeking to grant interest-free loans of up to P100,000 to qualified overseas Filipino workers (OFWs) with valid overseas employment contracts.
The measure aims to help cover pre-employment and pre-departure expenses such as placement and processing fees, medical and psychological exams, training, airfare, passports, visas, and work permits. First-time OFWs will be given priority and required to attend a financial literacy orientation.
Tulfo said many OFWs are forced to borrow from loan sharks just to pay required fees, even as they contribute billions of dollars in remittances to the economy.
If passed, the program will be administered by the Department of Migrant Workers in coordination with the Overseas Workers Welfare Administration.
Loans will be interest-free for the first year. After that, interest rates must not exceed prevailing government lending rates. Payments will be made through authorized banks, with at least one immediate family member serving as co-borrower.
First-time OFWs will also get prioritized processing, up to 18 months to repay, and free access to debt management programs.
Tulfo said the measure aims to prevent OFWs from falling into long-term debt and to help them build a more secure future for their families.IMT
