State-run Government Service Insurance Service has declared a loan moratorium for members as well as pensioners in Albay province who were affected by typhoon “Nina” late last year.
In a statement Wednesday, the GSIS said the moratorium will be effective for six months, starting March until August.
“Suspending the payment of loan amortization will enable our members and pensioners to prioritize more urgent financial needs as they recover from Nina’s devastating effects,” GSIS officer-in-charge Nora Malubay-Saludares said.
According to the GSIS, all active members working and pensioners living in Albay who have up-to-date loan payments as of January 3 as well as those with loans granted or renewed on or before February 2 will be automatically qualified for the loan moratorium.
Covered by the moratorium are the following: deed of conditional sale, emergency loan, pension loan, pensioners’ emergency loan, pensioners’ restructured loan, real estate loan and restructured real estate loan.
However, outstanding loans that had been covered by previous moratoriums will not be included, according to the GSIS.
“An interest on the six-month moratorium shall be computed based on the outstanding loan balance as of March 2, 2017 and prevailing interest rate of the said loan on a monthly basis. The computed interest will be collected on the last month of the loan term, or upon renewal or termination, whichever comes first,” the GSIS said.
“The respective administrative or finance officer of the government agency must immediately discontinue deducting the monthly loan payment from the qualified members’ salary during the moratorium period. However, they must resume deduction in the September 2017 payroll,” the GSIS added.
Also, the GSIS said it will “notify qualified housing loan borrowers to retrieve their postdated checks from the former’s treasury unit and replace it not later than August 1, 2017.”
As for fire insurance and service loan insurance, these “will continue to be in force throughout the moratorium period, provided premiums due are paid monthly.”
“Resumption of loan payment will be reflected in the September 2017 billing statement for remittance not later than October 10, 2017. Housing loan borrowers who are paying over the counter must automatically resume payment beginning September 2017,” according to the GSIS.
“If borrowers renew their loans starting February 3, 2017 onwards, the moratorium for the loan account will be terminated. Once a borrower separates or retires from service, the choice of loan amortization schedule program will be applied to their outstanding consolidated and housing loans covered by the moratorium,” it added.
Also, “those who will not avail of the moratorium are advised to pay their loan amortization for the next six months and their payment will be posted accordingly,” the GSIS said.