GSIS allots P10-B in emergency loan for members hit by ‘Gener', floods

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GSIS allots P10-B in emergency loan for members hit by ‘Gener', floods

Philippine Information Agency

posted 9-Aug-2012 ·

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State pension fund Government Service Insurance System today said its Board of Trustees approved the release of P10 billion for eligible members adversely affected by typhoon “Gener” and the ensuing floods brought about by the monsoon.

“More than half a million of our members based in the calamity-declared areas are in dire need of assistance,” President and General Manager Robert G. Vergara said in a statement.

Based on the latest declaration of the National Disaster Risk Reduction and Management Council, the following areas are under a state of calamity: National Capital Region, Cavite , Rizal, Pampanga, Tarlac, Bataan, Zambales, Bulacan and Laguna.

The GSIS had recently relaxed the terms of its emergency loan program to make it more member-friendly.

“We reduced the interest rate to six percent from eight percent, waived the one percent service fee, and extended the payment of the first monthly amortization to three months from the loan drawdown,” Vergara explained.

Under the emergency loan program, eligible members can borrow Php20,000 payable in 36 equal monthly installments.

Members who can avail of the loan include active members working or residing in areas declared in a state of calamity; not on leave of absence without pay; have no pending criminal or administrative charges; have no arrearages in the payment of mandatory social insurance contributions; and have no loan that has been declared in default. The agency of the member-applicant must not also be suspended because of non-payment and non-remittance of premiums and loans.

Qualified members can apply for an emergency loan through the GWAPS (GSIS Wireless Automated Processing System) kiosks using their eCard or their UMID eCard.

“The loans will be electronically credited to our members’ accounts. They can draw down the loan through our kiosks, so there’s no need for them to go to our offices,” Vergara said.

The GSIS has100 stand-up kiosks distributed across the calamity-declared areas and will add 16 kiosks in its Pasay City Head Office.

“These are located in city and municipal halls, provincial capitols, selected agencies, GSIS offices, and Robinsons Malls .”

Members who do not have an eCard but who are eligible to apply for the loan can apply over-the-counter (OTC) at any GSIS office. Proceeds of OTC applications will be credited to a temporary eCard which the GSIS continues to distribute.

Due to the disruption in the operations of agencies based in the calamity-declared areas, Vergara pointed out that the GSIS will not impose any interest and penalty charges, for incurring delay in the remittance of their employees’ premium and loan contributions, for the month of July.

Section 7 of Republic Act 8291 or the GSIS Act of 1997, provides that “agencies which delay the remittance … shall be charged interest as may be prescribed by the Board but not less than two percent simple interest per month…”.

If the loan proceeds are not credited within seven days from the date of application, members can proceed to the nearest GSIS office or the nearest kiosk for the status of their account.

For any question about the emergency loan program, members can call the GSIS hotline at (02) 847.4747 or visit the GSIS office nearest them.

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