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NR # 3369
No-collateral loans for TESDA graduates sought
A lady-lawmaker laments that many graduates of courses offered by the Technical Education and Skills Development Authority (TESDA) and other learning institutions find it difficult to secure employment This is the main reason why !ep Evelina " Escudero (# st District$ Sorsogon) filed %& '(') which calls for no-collateral$ low-interest loans to said graduates *The inability to raise funds to cover the cost of processing applications hinders many of said young graduates to secure employment in foreign countries$+ Escudero said The measure$ Escudero said$ proposes a special loan for graduates of TESDA and other educational institutions duly accredited by the ,ommission on %igher Education with approved overseas -obs contracts .nder %& '(')$ each loan shall be payable within a period not e/ceeding five (0) years and shall be in an amount not to e/ceed 1#22$222 at the option of the graduate concerned She added that said loan program shall be consistent with safe and sound banking practices as provided under !epublic Act )(3#$ otherwise known as *The "eneral &anking 4aw of 5222 + The bill mandates all government and private banking and financial institutions to make the necessary provisions for e/tending said no-collateral$ low-interest loans *The loans e/tended under the proposed law shall be used e/clusively for meeting the credit needs of such graduates with approved overseas -ob contracts$+ Escudero added The bill provides that the Director-"eneral of TESDA or the chairperson of ,%ED$ whichever the case may be$ be directed to enter into the necessary 6emoranda of Agreement with the appropriate government and private banking and financial institutions to provide for the terms and conditions under which the loans shall be e/tended to beneficiaries The 6onetary &oard shall prescribe the interest rate on the loans which shall also be based on the lowest rate of interest for similar credit accommodations prevailing at the time of effectivity of the proposed Act All government and private banking and financial institution which shall e/tend the loans specified under %& '(') shall also be granted development assistance incentives provided by the Bangko Sentral ng Pilipinas under Section 78 of ! A )(3# %& '(') has been referred to the %ouse ,ommittee on 9verseas :orkers Affairs chaired by Akbayan 1artylist !ep :alden &ello for appropriate action ('2) dpt