GSIS extends emergency loans to typhoon victims

MANILA, Philippines - The Government Service Insurance System (GSIS) is extending emergency loan assistance to eligible members affected by the recent typhoons.

According to GSIS, those in the province of Apayao, city of Manila, municipality of Rodriguez in Rizal, and municipalities of Botolan, Candelaria, and San Narciso in Zambales are eligible for emergency loan assistance.

These areas were severely affected by typhoons “Pedring” and “Quiel.”

“In view of this, qualified members can apply for an emergency loan from Nov. 15, 2011 to Dec. 14, 2011 via the GSIS Wireless Automated Processing System (G-W@PS) kiosk using their eCard or their UMID eCard.”

The GSIS said members who do not have an eCard Plus or UMID eCard but who are eligible to apply for the loan can apply over-the-counter (OTC) in the nearest GSIS office.

Under the emergency loan program, each eligible member can borrow P20,000. With an interest rate of six percent per year computed in advance, the loan is payable in three years in equal monthly installment.

“An Emergency Loan Redemption Insurance (ELRI) of 1.2 percent of the gross loan amount shall be deducted from the proceeds of the loan. In addition, any outstanding balance of previous Emergency Loan shall be deducted from the proceeds,” GSIS said.

Furthermore, GSIS said that member-borrowers with outstanding emergency loans shall be allowed to renew the loan if the borrower has paid at least 12 monthly installments but not earlier than the anniversary date of the previous loan.

The pension fund stressed that members who can avail of the loan are bona fide employees of the agency located in the declared calamity area or those who reside in the declared calamity area.

“They must also be in active service and not on leave of absence without pay. They should have no pending criminal or administrative charges and have no arrearages in the payment of mandatory social insurance contributions. They also must not have any loan that has been declared in default,” it said.

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