GSIS earmarks P2.5B for emergency loans in Cavite, Mindoro

The Government Service Insurance System (GSIS) on Thursday said it has allocated some P2.5 billion for emergency loans for members and pensioners affected by the pertussis outbreak in Cavite, and the El Niño phenomenon in Occidental Mindoro.

In a statement, GSIS said members with existing emergency loan balances can borrow up to P40,000 to clear the balance of their previous emergency loan, while those without existing emergency loans may apply for a P20,000 loan.

The loan will have a 6% interest rate with a three-year payment period. This will include a redemption insurance coverage, which will pay off the loan balance in case of the borrower’s death during the loan term.

Members and pensioners may apply using the GSIS Touch mobile application, with applications in Mindoro due on May 7, and on June 7 for those in Cavite.

Those qualified for the loan are active members residing in the calamity areas, must not be on leave of absence without pay, and have no pending legal cases.

They must also have paid at least six monthly premium contributions, and have a net take-home pay not lower than P5,000. Pensioners residing in the calamity areas may also apply so long as their net monthly pension after availing the loan is at least 25%.

The Province of Cavite in March declared a state of calamity due to the rising cases of whooping cough, while a number of towns in Mindoro have been placed under a state of calamity due to El Niño.

Under its charter, the GSIS is mandated to ensure that its members are insured against the occurrence of certain contingencies in exchange for their monthly premium contributions. They are entitled to benefits such as life insurance, separation or retirement benefits, and disability benefits.

It is also the administrator of the General Insurance Fund, providing insurance coverage to government assets and properties that have government-insurable interests.

?The agency reported a 70% increase in its net income in 2023 to P113.3 billion from P66.4 billion in 2022, as revenues increased by 33% to P311.3 billion from P234.9 billion in the previous year.—AOL, GMA Integrated News