MANILA, Philippines–State-run Government Service Insurance System (GSIS) announced over the weekend that members affected by Typhoons “Luis” and “Mario” may avail of calamity loan.
On its website, the state pension fund said it had “enhanced the terms” of its emergency loan, which now allows victims of the two typhoons that hit the country last month to borrow as much as P40,000.
“GSIS doubled the amount of the maximum credit limit for members who have existing emergency loan in order for them to take home a bigger amount. Moreover, GSIS waived the 12-month amortization requirement for emergency loan renewal. For members with no emergency loan yet, they may borrow up to P20,000,” GSIS President and General Manager Robert G. Vergara explained.
State of calamity
On top of the loan amount, borrowers will pay a 6-percent annual interest in 36 monthly installments. The emergency loan’s initial amortization shall be automatically deducted from the borrower’s salary three months upon being granted the loan, according to GSIS.
Only active members living or working in areas that had been declared as under a state of calamity can borrow.
The following areas were placed under a state of calamity after being devastated by Typhoons Luis and Mario: Marikina City, Cainta in Rizal, Calumpit and Meycauayan in Bulacan, as well as the entire provinces of Ilocos Norte, Ilocos Sur and Pangasinan.
Also, borrowers “should not be on leave of absence without pay, have no arrears in the payment of mandatory monthly contributions, and have no loans that are declared in default,” GSIS added.
GSIS expects up to 40,560 members to secure emergency loans, whose application deadlines are as follows: Oct. 28 in Cainta and Marikina; Nov. 7 in Ilocos Sur; and Oct. 31 in other calamity-declared areas.
“Interested members may apply through the GSIS Wireless Automated Processing System kiosks in GSIS offices, provincial capitols, city halls, selected municipal offices, large government agencies such as the Department of Education, and selected Robinsons malls. The loan is electronically credited to the borrower’s GSIS e-Card,” the GSIS said.
For 2014, GSIS has set aside P15 billion for emergency loans. It has already released nearly P4 billion in calamity loans as of end-September.