To help members and pensioners in nine areas in Visayas and Mindanao placed under a state of emergency due to the prolonged dry spell caused by El Niño, state-run pension fund Government Service Insurance System (GSIS) said it had allotted more than P5.8 billion in emergency loan assistance, which can be tapped until next week.
Interested borrowers in Cebu may do so until May 31, while loan applications will be accepted until June 4 from those living or working in the provinces of Camiguin, Davao Oriental, Iloilo and Negros Oriental, as well as Butuan City and Villanueva town in Misamis Oriental, and the municipalities of Ipil and Titay in Zamboanga Sibugay, the GSIS said in a statement on Thursday.
“GSIS allotted more than P2 billion in emergency loan for its 60,076 active members and 11,135 old-age pensioners in Cebu and another P2.8 billion for its 76,745 members and 17,814 pensioners in Negros Occidental and Iloilo, except Iloilo City,” the GSIS said. In the case of Iloilo City, which had been placed under a state of emergency earlier on, the deadline for loan application was last May 20.
Also, “close to P877 million has been set aside for the 28,282 members and 3,837 pensioners in the Mindanao areas affected by El Niño,” the GSIS added.
Active members who during the past six months have no arrears in paying the mandatory monthly premium contributions as well as loans, and are not on a leave of absence without pay, are qualified to avail of the emergency loan.
This emergency loan will be slapped with a 6-percent interest a year, payable in 36 monthly installments.
It will be also covered by a loan redemption insurance, under which the immediate family will not have to pay the remaining balance when the member dies, as the loan will be deemed as fully paid.