GSIS offers P2.75B in emergency loans in calamity-hit areas

The Government Service Insurance System (GSIS) is offering up to P2.75 billion in emergency loans to over 109,000 government workers and pensioners in calamity-hit areas to help in their recovery from a crop pest outbreak, rising dengue cases, and El Niño conditions.

Under the terms, members with an existing emergency loan balance may borrow up to P40,000 to pay out the outstanding balance, while those without existing liabilities may apply for up to P20,000.

The emergency loan will carry a 6% interest rate payable over three years, with monthly amortization for a P20,000 loan at P655.56, and at P1,311.11 for a P40,000 loan. It will come with a redemption insurance feature, which deems the balance fully paid in case of the borrower’s death.

Those qualified are members in active service working or residing in calamity-declared areas, are not on leave without pay, have no pending administrative or criminal case, and have paid the three-month premium contributions within the prescribed six-month period.

They must also have no unpaid loans for more than six months, and have a net take-home pay of at least P5,000 after deducting mandatory monthly obligations.

Old-age and disability pensioners in the affected areas may also avail of the loan, provided that their resulting net monthly pension after loan availment is at least 25% of their basic monthly pension.

Applications will be accepted until November 13 in Capiz; November 20 in Camarines Norte, Camarines Sur, and Naga; and November 28 in Agusan del Sur and Las Nieves in Agusan del Norte.

Under its charter, the GSIS is mandated to ensure that its members are insured against certain contingencies in exchange for their monthly premium contributions. They are entitled to benefits such as life insurance, separation or retirement benefits, and disability benefits. — BAP, GMA News