MANILA, Philippines—The Government Service Insurance System has cut the interest rate on emergency loans from 8 percent to 6 percent, for members who work in or are residents of calamity areas.
Robert G. Vergara, GSIS president and general manager, said in a statement on Wednesday, that qualified members could borrow P20,000 under this package until Nov. 3.
Vergara said that aside from reducing the interest rate, GSIS has also waived the 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,” he said.
Vergara said borrowers must be working or residing in the Ilocos Norte, Benguet, Quirino, Isabela, Aurora, Nueva Ecija, Bulacan, Pampanga.
Also qualified are GSIS members working or residing in Calasiao, Pangasinan; San Felipe, Zambales; Amadeo and Noveleta, Cavite; Dinalupihan, Bataan; Amulung, Cagayan; Olongapo City; Tuguegarao City; and Tarlac City.
In Metro Manila, qualified areas include Malabon, Navotas, and Marikina.
These areas bore the brunt of typhoons “Egay,” “Juaning,” Falcon,” “Mina,” “Pedring,” and “Quiel,” which brought flash floods and landslides in the areas.
A GSIS emergency loan needs to be settled in monthly installments within three years, with the initial payment starting three months after the fund has been drawn.
As for GSIS members with outstanding emergency loans, they are allowed to renew the loan if they have paid at least 12 monthly installments, but not earlier than the anniversary date of the previous loan.
Vergara said the interest relief is also for government employees who are in active service and not on leave of absence without pay, or have no pending criminal or administrative charges.
The borrower should also have no arrearages in the payment of mandatory social insurance contributions, and have no loan that has been declared in default.
Moreover, the agency that the member works for should be in good standing with the GSIS and has not been suspended due to non-payment and non-remittance of premiums and loans.