GSIS sets emergency loan rules for members, pensioners
At A Glance
- The Government Service Insurance System (GSIS) issued guidelines for emergency loans (EL) to active members and pensioners<br>Eligible borrowers may receive emergency loans worth P20,000; those with existing EL accounts who have experienced another valid emergency may receive P40,000<br>Six percent interest rate applied in advance, resulting in an annual effective rate of 10.411 percent<br>Loans must be for legitimate purposes verified by GSIS<br>Valid applicants include those affected by natural disasters such as typhoons, hurricanes, earthquakes, and others<br>A state of calamity proclamation by the office of the President, NDRRMC, or local sanggunian is required<br>Other emergencies like pandemics may also qualify with a written proclamation from the Office of the President
State-owned Government Service Insurance System (GSIS) has issued guidelines for providing emergency loans (EL) to both active members and pensioners.
In a memorandum dated Nov. 22, 2023, GSIS said eligible borrowers may receive emergency loans worth P20,000, and those with existing EL accounts who have experienced another valid emergency may receive P40,000.
The pension fund indicated that a six percent interest rate, calculated in advance, would apply, resulting in an annual effective rate of 10.411 percent. Additionally, the loan must be for legitimate purposes verified by the GSIS.
Valid applicants for the EL are those who have encountered natural disasters such as typhoons, hurricanes, tornados, volcanic eruptions, earthquakes, tsunamis, flooding, drought, and other geologic processes.
The pension fund said that there must be a written proclamation of a state of calamity issued by the office of the President, or the National Disaster Risk Reduction and Management Council (NDRRMC), or the local sanggunian.
Other natures of disaster, such as the pandemic which causes economic harm, may also claim the EL, given that they have a written proclamation from a State of Public Health Emergency by the Office of the President.
Instances, wherein the emergency is not caused by natural or geologic calamities, like dengue, siege, etc., or an outbreak spread within the province or region, may submit a request from the local sanggunian for GSIS to enable the EL program.
Additionally, active members or pensioners are qualified to avail of the EL if they are bona fide employees of the government agency within the declared calamity area or a resident of a declared calamity area.
GSIS has also noted that a member can certify for the emergency loan if they are not on leave of absence without pay, and if they have paid their premium payments within the last six months.
Those with administrative cases and/or criminal charges cannot get the loan, unless the pending case is for a light offense.
Moreover, the resulting net take-home pay of the borrower after getting the EL should not be lower than the amount required under the General Appropriations Act (GAA), after all required monthly contributions have been deducted.
The pension fund also emphasized that pensioners must have no outstanding loan being deducted from their monthly pension except their pension loan, and must have a resulting net monthly pension after EL availment of at least 25 percent of their basic monthly pension (BMP).
The emergency loan can be inquired through an online filing in any GW@PS kiosks in any local GSIS offices, or the GSIS Touch mobile app, or can be done over-the-counter. (Gabriell Christel Galang)