The Government Service Insurance System (GSIS) has approved Php511 million emergency loans for two flood-hit Davao areas.
In a statement that was issued on Monday, the state-run pension fund for government workers and retirees said that over 25,000 of its active members and pensioners in the province of Davao del Norte and Montevista town in Davao de Oro province would benefit from the emergency loan.
The applications for the loan program opened last April 8.
Rains have caused damage to crops, houses, infrastructure, properties, and other critical local government facilities.
GSIS president and general manager Rolando Macasaet said members and pensioners who are paying an emergency loan can borrow up to P40,000, while new loan applicants can borrow P20,000.
The emergency loan will be payable in 36 equal monthly installments with a 6-percent interest rate.
Active members must have been residing or working in the calamity-hit areas and “not to be on leave of absence without pay, have no pending administrative case or criminal charge, have at least three monthly-premium payments within the last six months prior to application; and have a net take-home pay not lower than the amount required under the General Appropriations Act after all monthly obligations have been deducted.”
The members who have emergency loans that would have remained “unpaid for six months or less (in arrears) or more than six months (already due and demandable) may apply for emergency loan renewal.”
A loan redemption insurance will deem the loan fully paid in the event of borrower’s demise.
