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What you need to know about the Loan Moratorium Program for Sendong victims

Frequently asked questions and answers on the Loan Moratorium Program for Sendong Victims

Why did the GSIS offer  a loan moratorium to members affected by Typhoon Sendong?

The GSIS Board of Trustees has approved the grant of a loan moratorium to GSIS members who are still reeling from the destructive effects of Typhoon Sendong to assist them in their financial needs in the face of the death of their loved ones, damaged homes and properties, and loss of livelihood or source of income.

What is the basis for the grant of the loan moratorium?

The GSIS Board of Trustees approved under Resolution No. 2, dated January 12,  2012 the grant of moratorium to Typhoon Sendong victims in severely affected calamity areas.

Who are the qualified borrowers under the moratorium?

All active members who were granted emergency loan as a result of Typhoon Sendong are qualified to an automatic deferment or moratorium of loan repayments, without interest and penalties, for the months of January, February and March 2012.

Members who were granted emergency loans as a result of Typhoon Sendong and pensioners residing in Cagayan de Oro and Iligan may apply for the grant of another nine month-moratorium, from the period  April to December 2012, on the payment of loan amortization, without  interest and penalties.

What are the requirements to avail of the three- month moratorium?

There is no need to apply for the three-month moratorium program.  All members who were granted emergency loan as a result of Typhoon Sendong are automatically entitled to the moratorium or the deferment of loan repayments for the months of January, February and March 2012.

What are the requirements to avail of the additional nine-month moratorium for members?

Since only members who are residing and/or working in Cagayan De Oro and Iligan are qualified to apply to the additional nine-month moratorium period, they need to file an application with GSIS field  offices in Cagayan De Oro or Iligan City only.

What are the requirements to avail of the additional nine-month moratorium for pensioners?

GSIS pensioners are required to file an application for the nine-month moratorium. Only pensioners residing in Cagayan De Oro and Iligan City are qualified to apply.

Can a member file an application for the additional nine-month moratorium through the website, via email or snail mail?

No, any application for the moratorium filed through the website, via email or snail mail will not be honored.

Is there a deadline in filing applications for the nine-month moratorium?

Yes, the application  for the nine-month moratorium should be filed not later than February 29, 2012.

What loan accounts are covered by the three-month moratorium?

In the three-month moratorium, the following loan accounts of GSIS members are covered: housing loan, consolidated loan, eCash advance, policy loan, and emergency loan granted as a result of Sendong.

All these accounts should be active, without record of unpaid amortization for more than six months as of December 31, 2011, and granted on or prior to December 31, 2011. But all emergency loan granted due to Typhoon Sendong are covered regardless of the date of granting.

What loan accounts are covered by the nine-month moratorium?

The nine month-moratorium covers the following accounts: pension loan; loans under the Choice of Loan Amortization Schedule for Pensioners (CLASP); housing loan, consolidated loan, eCash advance, policy loan, and emergency loan.

All these accounts should be active, without record of unpaid amortization for more than six months as of December 31, 2011, and granted on or prior to December 31, 2011. But all emergency loan granted due to Typhoon Sendong are covered regardless of the date of granting.

What loan accounts are not covered by the moratorium?

Due and demandable accounts as of December 31, 2011 are not covered by the moratorium.

Who will notify the office of the borrower on the implementation of the moratorium ?

The GSIS will advise the concerned head of agency, finance/administrative and disbursing officer in writing on the temporary stoppage of loan amortizations of qualified borrowers during the moratorium period. In the letter the date of the resumption of loan repayments will also be indicated.

How will the deferment of loan payment be implemented for borrowers whose payment of monthly loan amortization is through payroll deduction?

On the basis of the advice from GSIS regarding the entitlement of a member to the program, the finance/administrative office or disbursing officer should immediately stop the deduction of monthly loan amortization  from the salary of the member covered by the moratorium.

How will the deferment of loan payment be carried out for housing loan borrowers whose mode of payment is through post dated checks (PDC)?

Borrowers whose mode of payment is through PDC will be advised in writing by the GSIS to retrieve their PDC that will fall due within the moratorium period.  They will subsequently be required to issue a new set of PDC effective upon the resumption of payment of amortization.

What will happen to amortizations paid during the moratorium period?

Any remittance for loan amortizations for the months covered  by the moratorium will be applied directly to the outstanding balance of the loans as of      December 31, 2011, following this  order of priority: (1)  penalties/surcharge; (2) loan redemption insurance (SLRI/HLRI); (3) interest; and, (4) principal. This will also apply to direct payments

Can a member request a refund of the payments or remittances already received and receipted by the GSIS?

No, requests for refund of payments or remittances already received and receipted by GSIS will not be allowed.

Will the office of the borrower continue to receive monthly billing for amortizations covered by the moratorium?

No, the electronic generation of monthly billing for amortizations due on qualified accounts will be suspended during the moratorium period.

Will a borrower receive demand letters and collection notice during the moratorium period?

No, the sending of demand letters and collection notices for qualified accounts will be suspended until the end of the moratorium period.

However, borrowers who did  not qualify under the program will be issued demand letters and collection notices, if necessary.

Should the agency wait for a notice from the GSIS to resume the deduction of the borrower’s monthly amortization at the end of the moratorium period?

No, the agency should resume the deduction of the monthly loan amortization without need of notice from the GSIS.  The advice sent by the GSIS should be the basis of the resumption.

Should housing loan borrowers paying over-the-counter wait for a notice from the GSIS before resuming their monthly amortization at the end of the moratorium period?

No, housing loan borrowers who are paying “over-the-counter” should  resume paying the required monthly amortization at the end of the moratorium period without need of notice nor demand.

After the end of the moratorium period, will the policy on declaring loan accounts in default be implemented again?

Yes, the existing policy on declaring accounts in default will apply after the end of the moratorium period.

Can a member renew his existing loan or avail of other loans during the moratorium period?

Yes, he may renew his loan or avail of other loans during the moratorium period.  However,  any renewal or availment of loan during the moratorium period will result to the lifting of benefits under the moratorium program effective upon the date of availment/renewal.

What will happen to the remaining balance of the loan under the moratorium if the borrower renewed or availed of other GSIS loan programs?

The remaining balance of the loan will be deducted from the proceeds of the new loan.

Will the Choice of Loan Amortization Schedule for Pensioners (CLASP) be continued to apply for borrowers who are retiring within the moratorium period?

Yes, the CLASP will continue to be applied for qualified borrowers who have retired  from the service within the moratorium period.

Will the insurance coverage of a housing loan be enforced during the moratorium period?

Yes, the Fire Insurance Housing Loan Redemption Insurance will  continue to be enforced during the moratorium period.  However, the insurance premium will  accrue on a monthly basis, the payment of which should be made by the member at the end of the moratorium period.