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Economy

GSIS lowers interest on emergency loans in typhoons’ wake

October 5, 2011 5:19pm
Government Service Insurance System (GSIS) members in calamity-striken areas, among other emergency situations, can now avail of its emergency loan at lower interest rates, the state-owned pension fund has announced.

The GSIS will charge a 6-percent interest, from the previous 8 percent, on emergency loans members will avail themselves of from Oct. 5 to Nov. 3, its president and general manager Robert Vergara said. The pension fund for government employees will also stop charging a 1-percent service fee for loans during the said period, Vergara added.

“This is part of the current effort of the board and management to make our policies and programs more responsive to our members especially at a time they need it most," he explained.

Typhoons Pedring and Quiel, which lashed Luzon last week, prompted government to place a number of areas under a state of calamity, with the President considering to declare a national state of calamity.

Existing policies

GSIS policies on emergency loans allow each eligible member to borrow P20,000, payable in equivalent monthly installments in three years. The monthly payments start three months after the loan drawdown, according to the insurer’s policies.

Members with outstanding emergency loans shall be allowed to renew their loans upon payment of at least 12 monthly installments.

"Members who can avail of the loan include those who are bonafide employees of the agency located in the declared calamity area or is a resident of the declared calamity area; are in active service and not on leave of absence without pay; have no pending criminal or administrative charges; have no arrearages in the payment of mandatory social insurance contributions; and have no loan that has been declared in default," the GSIS said.

“The agency of the member-applicant must not also be suspended because of non-payment and non-remittance of premiums and loans," the agency added.

From January to August this year, the GSIS granted P1.68 billion in emergency loans. Vergara said the money was able to help members who have suffered from the recent spate of natural calamities. — PE/VS, GMA News
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