The Government Service Insurance System (GSIS) will make available emergency loans to members and pensioners badly hit by the 7-magnitude earthquake on Wednesday.
In a statement, GSIS president and general manager Wick Veloso said the state-run pension fund for government workers and retirees had set aside P5.4 billion for emergency loan assistance this year.
Veloso said that once a state of calamity has been declared in affected areas, affected members and pensioners residing in those areas could apply for emergency loans.
“We will ensure that our members and pensioners will receive financial assistance, through our emergency loan, to tide them over during the crisis. We are also in touch with all public entities affected by the earthquake to check if there are damaged government properties that may claim insurance from the GSIS,” Veloso said.
“GSIS members who have an existing emergency loan balance may borrow up to P40,000 to pay their previous emergency loan balance and still receive a maximum net of P20,000. Those without an existing emergency loan may apply for P20,000,” the GSIS said.
“Pensioners may likewise apply for a P20,000 loan,” it added.
According to the GSIS, “qualified to apply are members who are in active service and not on leave of absence without pay; have at least three months of paid premiums within the last six months; have no pending administrative or criminal case; and have a net take-home pay of not lower than P5,000 after all required monthly obligations have been deducted.”
The GSIS’s emergency loans are slapped with 6 percent interest rate a year computed in advance, and payable in 36 equal monthly installments.
“It is also covered by a loan redemption insurance, which deems the loan fully paid in case of the borrower’s demise, provided that loan payment is up to date,” according to the GSIS.