The Government Service Insurance System (GSIS) has earmarked P5.8 billion for emergency loans in nine areas in the Visayas and Mindanao regions that are affected by El Niño.
For the Visayas region, 60,076 active members and 11,135 pensioners in Cebu were allotted a total of P2 billion in emergency loans.
On the other hand, P2.8 billion was allotted for 76,745 active members, and 17,814 pensioners in Negros Occidental and Iloilo.
In six Mindanao areas affected by the dry spell, a total of 28,282 members and 3,837 pensioners got a total of P877 million in emergency loans. The areas include the province of Camiguin, Davao Oriental, Butuan, Villanueva in Misamis Oriental, and the municipalities of Titay and Ipil in Zamboanga Sibugay.
Active members of the GSIS and pensioners who are residing or working in the calamity-declared areas and who are borrowing for the first time can apply for an emergency loan worth P20,000. Those with existing loans can borrow P40,000, from which their outstanding balance will be deducted.
Applications for emergency loans are accepted at GSIS Wireless Processing System kiosks, which are located in all GSIS branches and extension offices.
Deadline for filing of emergency-loan applications in the Cebu area is on May 31, while those from other areas can submit their applications until June 4, 2016.
Emergency loans carry a 6-percent interest rate per year, computed in advance and payable in 36 equal monthly installments. This is covered by a loan-redemption insurance, which deems the loan fully paid in case of the borrower’s demise provided the loan repayment is up-to-date.