GSIS earmarks P5.8B for emergency loans in Visayas, Mindanao

The Government Service Insurance System (GSIS) on Thursday announced it has allocated some P5.8 billion to be made available for emergency loans for members in Visayas and Mindanao affected by the El Niño phenomenon.

In an emailed statement, GSIS said it has earmarked P2 billion in emergency loans for its 60,076 active members and 11,135 old-age pensioners in Cebu.

It has also allocated P2.8 billion for its 76,745 members and 17,814 pensioners in Negros Occidental and Iloilo province, excluding Iloilo City.

For Mindanao, some P877 million has been set aside for the 28,282 members and 3,837 pensioners in Camiguin; Davao Oriental; Butuan City; Villanueva, Misamis Oriental; and Titay and Ipil in Zamboanga Sibugay.

"The deadline for application in Cebu is May 31, and for the rest of the areas, June 4," GSIS said.

In Iloilo City -- earlier declared under a state of emergency -- loan applications were accepted until May 20.

According to the GSIS, active members working or residing in calamity-declared areas borrowing for the first time may apply for loans up to P20,000 while those with existing emergency loans may borrow up to P40,000 where the outstanding balance will be deducted.

"They are qualified to apply for the loan if they are not on leave of absence without pay and have no arrears in paying premium contributions and loans in the last six months," GSIS said.

Under the terms of the agency, an emergency loan carries a 6-percent interest rate per annum, computed in advance and payable in 36 equal monthly installments.

It is also covered by a loan redemption insurance, effectively making the loan fully paid in case of the borrower's demise provided the loan repayment is up to date.

Active members may apply through any GSIS Wireless Automated Processing System kiosks while old-age pensioners are required to apply in person.

"If they have been reemployed in government service, they may borrow only once," GSIS said. —Jon Viktor D. Cabuenas/KBK, GMA News