GSIS cuts interest rate for Emergency Loan
Date Posted: 2011-10-05 20:00:22
The Government Service Insurance System (GSIS) today announced that the current governing board reduced the interest rate for Emergency Loan from eight percent to six percent and would no longer charge a one percent service fee for the loan.
“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,” GSIS President and General Manager Robert G. Vergara said.
Under the GSIS Emergency Loan program, each eligible member can borrow P20,000, payable in three years in equal monthly installment. The initial payment for the loan shall start three months after the loan drawdown.
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.
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 agency of the member-applicant must not also be suspended because of non-payment and non-remittance of premiums and loans.
Members eligible to avail of the GSIS Emergency Loan program can apply via the G-W@PS (GSIS Wireless Automated Processing System) kiosk using their eCard or their UMID eCard. Members who do not have an eCard but who are eligible to apply for the loan can apply via over-the-counter (OTC) at any GSIS office. Proceeds of OTC applications will be credited to a temporary eCard which the GSIS is now distributing.
Vergara added that the pension fund has granted Php1.68 billion in emergency loans for the period January to August this year to assist members who suffered from the recent spate of calamities.
The amount includes emergency loan assistance previously granted to members working and/or residing in Jolo, Sulu; in the province of Samar; Southern Leyte; Albay, Camarines Sur, Davao City; Pikit, North Cotabato; Cotabato City; Maguindanao; and the entire provinces of Pampanga; and Bulacan.
Meanwhile, the GSIS has also announced that it has approved the release of an Emergency Loan to eligible members working and/or residing in the following areas: province of Ilocos Norte; province of Benguet; municipality of Calasiao, Pangasinan; Quirino Province; municipality of Casiguran, Aurora; municipality of San Felipe, Zambales; and municipality of Amadeo, Cavite.
Also included are the province of Isabela; province of Aurora; province of Nueva Ecija; province of Bulacan; province of Ilocos Norte; province of Benguet; province of Pampanga; city of Olongapo, Zambales; city of Tuguegarao, Cagayan; city of Tarlac, Tarlac; city of Malabon; City of Navotas; city of Marikina; municipality of Noveleta, Cavite; municipality of Dinalupihan, Bataan; and municipality of Amulung, Cagayan
This is in light of the recent adverse effects of typhoons “Egay,” “Juaning,” Falcon,” “Mina,” “Pedring,” and “Quiel,” which brought flash floods and landslides in the said areas.
Eligible members can avail of the latest Emergency Loan from October 5 to November 3, 2011 only.