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What is HELP?
The Home Emergency Loan Program (HELP) is a special loan program of the Government Service Insurance System (GSIS) that seeks to enable GSIS members to rebuild their homes and resume productive livelihood and employment activities in communities hard-hit by typhoon Yolanda. HELP is available to all GSIS active members who are working and/or residing in the worst- hit calamity areas which were identified in the grant of emergency loans to Yolanda victims.
How much is the loan amount in HELP?
The maximum loan amount in HELP is based on the member’s total length of service (TLS).The maximum loanable amount of members with less than five years of service is P30,000 while those with five years or more but less than 10 years may borrow up to P100,000. On the other hand, the maximum loan amount of members with a TLS of 10 years and above is P200,000. The loanable amount that may be availed of shall be in multiples of P10,000, i.e. P10,000; P20,000; P30,000 and so on.
Who are qualified to avail of HELP?
Qualified to avail of HELP are members identified as working or residing in the worst-hit calamity areas as of November 15, 2013, including employees of suspended agencies.
When can members apply for HELP?
Application forms shall be accepted from January 2, 2014 to June,3 2014 under the “file anywhere” policy. Application forms will be accepted in any GSIS office nationwide.
Is HELP a renewable loan program?
No, HELP may be availed only once.
What are the requirements in availing of HELP?
Interested members are required to submit fully-accomplished HELP application form over the counter. The application should be approved by the members’ Agency Authorized Officer (AAO). The AAO should strictly observe the minimum net take-home pay prescribed under the General Appropriations Act.
How much is the interest rate and loan term of HELP?
The interest rate in HELP is six per cent compounded annually based on a diminishing balance. A fraction of a month is considered one month.
How much is the net proceeds of the loan?
The net proceeds of HELP will be arrived at after deducting from the gross amount the processing fee, which is computed at 1% of the gross loan amount.
How much is the total monthly amortization of HELP?
The monthly amortization for various loan amounts (multiples of P10,000), payable in ten years, is below.
| Loan Amount | Monthly Amortization | ||
|---|---|---|---|
| Prin. & Int. | RI Premium | Total | |
| 10,000.00 | 110.22 | 3.80 | 114.02 |
| 20,000.00 | 220.45 | 7.60 | 228.05 |
| 30,000.00 | 330.67 | 11.40 | 342.07 |
| 40,000.00 | 440.90 | 15.20 | 456.10 |
| 50,000.00 | 551.12 | 19.00 | 570.12 |
| 60,000.00 | 661.34 | 22.80 | 684.14 |
| 70,000.00 | 771.57 | 26.60 | 798.17 |
| 80,000.00 | 881.79 | 34.20 | 1,026.22 |
| 90,000.00 | 992.02 | 34.20 | 1,026.22 |
| 100,000.00 | 1,102.24 | 38.00 | 1,140.24 |
| 110,000.00 | 1,212.46 | 41.80 | 1,254.26 |
| 120,000.00 | 1,322.69 | 45.60 | 1,368.29 |
| 130,000.00 | 1,432.91 | 49.40 | 1,482.31 |
| 140,000.00 | 1,543.14 | 53.20 | 1,596.34 |
| 150,000.00 | 1,653.36 | 57.00 | 1,710.36 |
| 160,000.00 | 1,763.58 | 60.80 | 1,824.38 |
| 170,000.00 | 1,873.81 | 64.60 | 1,938.41 |
| 180,000.00 | 1,984.03 | 68.40 | 2,052.43 |
| 190,000.00 | 2,094.26 | 72.20 | 2,166.46 |
| 200,000.00 | 2,204.48 | 76.00 | 2,280.48 |
When will the borrower pay the first due month of HELP?
The monthly amortization of HELP will start in July 2014 and the first monthly amortization must be remitted to the GSIS on or before August 10, 2014. The succeeding amortizations must be paid every 10th of the month until the loan is fully paid.
What will happen if the borrower fails to pay the monthly amortizations under HELP?
A HELP account which incurs arrearages equivalent to more than six (6) months of amortization will become due and demandable and will be charged an interest rate of 12% per annum compounded monthly.The borrower’s failure to pay six (6) monthly instalments will make the account in-default. Once the loan is declared in default, the redemption insurance coverage will be automatically lapsed or cancelled In such case, the outstanding balance of the loan shall be due and payable without need of demand or further notice, all of which the borrower expressly waives. On the other hand, as a matter of GSIS collection and remedial policies, arrearages will be deducted from other loans which the member may avail.
If the borrower dies after taking out the HELP loan, will the account be covered by the loan redemption insurance?
If the member dies and the loan payment is up-to-date, the loan shall be deemed fully paid by virtue of the redemption insurance coverage.In case the loan is in arrears, only the theoretical balance of the loan shall be considered fully paid while the arrearages shall be deducted from whatever benefits that may be due the deceased.
The redemption insurance coverage will be deemed lapsed or cancelled once the loan is declared in default. In such case, the outstanding balance and unpaid interests immediately prior to death will be due and demandable and shall be deducted from whatever benefits that may be due the deceased.
The insurance coverage will be automatically terminated once the borrower pays the loan in full or upon expiration of the term of the loan, whichever comes first.
What will happen to the HELP account if the borrower resigns, retires or leaves government service?
The loan shall be due and demandable upon the resignation, retirement, or separation from service of the member.In case of retirement, the outstanding principal and unpaid interests shall be collected in accordance with the Choice of Loan Amortization Schedule for Pensioners (CLASP).
Can a member pre-terminate a HELP account?
The loan may be pre-terminated without penalties by paying the outstanding balance of the loan before the end of the loan term.
- Can the borrower cancel the loan after it has been credited in the GSIS eCard account?
Once the loan is approved and the loan proceeds have been credited in the GSIS eCard account, the member has no more option to cancel the loan but only to pre-terminate it without any right to demand for reimbursements of the fees deducted (i.e. processing fee).
Can a member refund any overpayment in HELP?
The refund of loan overpayment will be facilitated by the GSIS in accordance with the existing policy guidelines on the treatment of excess loan payments.
How do we compute the loanable amount?
The loanable amount is computed by determining first the amount available for loan amortization under HELP. This amount is arrived at by adding the basic monthly salary and the allowance. Then, the following are deducted: the mandatory monthly deductions (tax withheld, GSIS premium contribution, PhilHealth contribution, and HDMF/Pag-Ibig monthly contribution); the net take-home pay as provided under the General Appropriations Act; loan amortizations for other authorized loan providers; and the GSIS loan amortizations under moratorium.Note that monthly amortizations pertaining to newly availed/renewed loans that are not yet reflected in the payslip/payroll at the time of granting of HELP loan should likewise be deducted from the Total Monthly Earnings for the Month.
The resulting amount is compared with the Table of Monthly Amortization, to determine the loan amount that can be amortized by the amount available for loan amortization under HELP.
Are the AAOs properly informed about the computation?
Yes, the Guidelines in the Computation of Loanable Amount and Approval of Application under HELP has been uploaded in the AAO website.
How much is the net take-home pay provided under the General Appropriations Act of 2014?
As provided for in RA 10633, the employee’s net take home pay should not be lower than P3,000.00
