THE Government Service Insurance System (GSIS) set aside close to P272 million in emergency loan for members and pensioners who were affected by massive flooding due to heavy rains in the province of Davao de Oro in April. The state pension fund said in a statement it is accepting applications until July 5.
Expected to benefit from the loan are 12,325 active members and 1,257 old-age and disability pensioners. Active members must be working or residing in the calamity-declared area. To qualify for the program, they must not be on leave of absence without pay, have no pending administrative case or criminal charge, have at least three monthly premium payments within the last six months prior to application; and have a net take-home pay not lower than the amount required under the General Appropriations Act after all monthly obligations have been deducted. Members who have emergency loans that have been unpaid for six months or less (in arrears) or more than six months (already due and demandable) may apply for emergency loan renewal.
Meanwhile, old-age and disability pensioners may avail of the loan as long as they reside in the calamity area and their net monthly pension after loan availment is at least 25 percent of their basic monthly pension. Pensioners who are also active members may apply for the loan only once.
Qualified loan borrowers with existing emergency loan may borrow up to P40,000 to pay off their previous emergency loan balance and will still receive a maximum net amount of P20,000. Those without existing emergency loan may apply for P20,000.
The emergency loan is payable in 36 equal monthly installments with a 6-percent interest rate, the GSIS said. The state pension fund added the instrument has a loan-redemption insurance that deems the loan fully paid in case of the borrower’s demise, provided the payment for the loan is updated.