GSIS extends emergency loans to ‘Maring’ victims

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MANILA, Philippines–State-run Government Service Insurance System (GSIS) has announced it would extend emergency loans to its members that were affected by floods brought by tropical storm ‘‘Maring’’ this week.

In a statement on Friday, the GSIS said it estimates that 200,000 of its members either work or reside in areas that were declared under “state of calamity” this week and would therefore be eligible for loans.

GSIS President and General Manager Robert G. Vergara said that GSIS members may either apply for the loan in any GSIS branch under its “file anywhere” policy or through its 147 GSIS Wireless Automated Processing System (GWAPS) kiosks stationed in the calamity areas located in provincial capitols,  city halls, municipal offices, large agencies and selected Robinsons Malls.

Portable kiosks will also be deployed in worst-hit areas to facilitate the loan application of affected members.

“Members may apply for the loan beginning today. The loan proceeds will be credited to their eCard accounts by Saturday, August 24, at the earliest,” Vergara said.

Under the GSIS Emergency Loan Program, eligible members may borrow P20,000 payable in 36 equal monthly instalments. They may renew their emergency loans upon payment of at least 12 monthly amortizations.

Active GSIS members may avail of the loan if they are working or residing in areas declared in a state of calamity if they are not on leave of absence without pay, have no arrearages in the payment of mandatory social insurance contributions, and have no loan that has been declared in default.

Members who do not have an eCard but who are eligible to apply for the loan may apply over-the-counter (OTC) at any GSIS office.

The GSIS has reduced the interest rate of the loan from eight to six percent, waived the one-percent service fee and extended the payment of the first monthly amortization to three months from the loan drawdown.

“The GSIS has made available a budget of P7 billion for the emergency loan program this year,” Vergara said. In December 2012, the pension fund disbursed a total of P8 billion in emergency loans that benefited more than 400,000 member-borrowers.