A measure filed in the Senate seeks to ease the financial burden faced by Filipinos preparing to work abroad by offering government-backed, interest-free loans for their mandatory pre-departure expenses.
Senator Erwin Tulfo introduced Senate Bill No. 1696, also known as the “OFW Pre-Employment Loan Assistance Act,” which would allow qualified overseas Filipino workers to borrow up to P100,000 provided they hold a verified employment contract.
The proposal addresses the common practice of workers taking out high-interest loans to cover costs such as placement fees, medical examinations, training, passports, visas, airfare, and other processing requirements. Tulfo noted that while overseas workers send billions of dollars to the Philippine economy, many of them leave the country already weighed down by debt. He added that numerous applicants approach his Action Center seeking financial help for their documentation and processing, with some resorting to informal lenders charging excessive rates.
Under the bill, the loan would carry no interest during the first year of repayment. A family member would be required to serve as co-borrower to help secure collection. First-time OFWs would receive priority access to the program and could repay their loans over a period of up to 18 months. They would also be required to attend a free financial literacy seminar before deployment.
If enacted, the program would be administered by the Department of Migrant Workers and the Overseas Workers Welfare Administration.
