Senator  Erwin Tulfo is now pushing for a measure seeking to provide interest-free loan assistance to aspiring overseas Filipino workers (OFWs) to help them cover their pre-employment and pre-departure requirements.

Sen. Erwin Tulfo seeks updates from the Philippine Amusement and Gaming Corporation (PAGCOR) and other government agencies on the enforcement of rules and regulations concerning the proliferation of online gambling. During Tuesday’s hearing, September 16, 2025, of the Committee on Games and Amusement, Tulfo cited the previous discussion of the committee specifically on the inability to fully regulate the activities of the Philippine Inland Gaming Operators (PIGOs). (Senate PRIB photo)

In filing Senate Bill No. 1696, or the proposed OFW Pre-Employment Loan Assistance Act, Tulfo sought to provide OFWs with a valid overseas employment contract access to loans of up to ₱100,000.

SB No. 1696 also mandates that first-time OFWs be given priority access to the program, alongside a mandatory financial literacy orientation, before they depart for work abroad.

“OFWs contribute billions of dollars in remittances. They significantly boost not only our economy but also our national morale; yet, they are often left to strive alone to achieve their dreams,” Tulfo said.

“In our Action Center, we frequently encounter OFWs who have to scramble for funds—often incurring debts from loan sharks—just to settle their pre-departure fees,” the senator added.

The bill also covers common pre-employment expenses such as placement and processing fees, medical and psychological examinations, training and skills assessment, airfare, passports, visas and work permits.

Under the proposed law, the OFW Pre-Employment Loan Assistance Program will be administered by the Department of Migrant Workers (DMW), in coordination with the Overseas Workers Welfare Administration (OWWA).

Under the bill, the loan shall remain interest-free during the first year of repayment.

Should this period lapse, any interest imposed shall not exceed prevailing government lending rates, with payments to be made through authorized bank accounts.

To ensure accountability, the bill requires at least one member of the OFW’s immediate family to be named as a co-borrower.

For first-time OFWs, they will be eligible to receive specialized support through prioritized processing, an extended repayment period of up to 18 months, and mandatory access to free debt management programs.

“It has become a common story among our OFWs that despite earning well abroad, they remain mired in debt because they lack the necessary training in financial management,” Tulfo remarked.

“We want our kababayans, who sacrifice being away from their families, to build a better life that lasts a lifetime. Our ultimate aspiration is that their children, and the generations after them, will no longer be forced to work abroad,” the senator emphasized.