Interest-free loans for OFWs sought

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February 23, 2026 | 12:00am

MANILA, Philippines — A Senate bill protecting aspiring overseas Filipino workers (OFWs) from predatory lenders has been filed by Sen. Erwin Tulfo.

Senate Bill 1696 or the “OFW Pre-employment Loan Assistance Act” will ensure that loans of up to P100,000 are free of interest.

The measure will help cover the steep upfront costs of working abroad, including placement fees, medical and psychological examinations, training, airfare and visa expenses.

“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,” Tulfo said.

Under the bill, OFWs with valid overseas employment contracts may apply for a loan, which will be administered by the Department of Migrant Workers in coordination with the Overseas Workers Welfare Administration.

The loan will be free of interest during the first year of repayment.

Beyond that period, any interest imposed will be capped at prevailing government lending rates.

First-time OFWs will be given priority access, including expedited processing and a longer repayment term of up to 18 months.

The proposed measure mandates a financial literacy orientation and provides free debt management programs before deployment.