NEGROS ORIENTAL, March 17 (PIA) –  The Government Service Insurance System (GSIS) has announced the granting of emergency loan (EML) to active members and old-age pensioners residing in Valencia, Negros Oriental.

The local government of Valencia has passed Sangguniang Board Resolution No.4 of 2017 with Local Disaster Risk Reduction Management Council (LDRRMC) resolution declaring LGU Valencia under a State of Calamity due to heavy rainfall on January 16 to 19 this year.  

With this, under the “Emergency GSIS Emergency Loan Program,” GSIS Dumaguete Branch informed the local government unit of Valencia the approval of its request to grant emergency loan.

Branch Manager Mercedes Enriquez of GSIS said the loan can be availed from March 16 to April 14, 2017.

Eligible member-applicant must be a resident of the declared calamity area and in active service with no arrears in the payment of mandatory social insurance contributions.

Enriquez said the application for EML by pensioners be done over-the-counter processing to validate the identity of the borrower especially with dual status to prevent double granting of loan.

The loanable amount is P20,000 but for those who have existing  EML accounts and were hit by another calamity or contingency, the loanable amount shall be up to P40,000.

Enriquez said the interest rate on the loans shall be six percent per year, computed in advance, with an annual effective rate of 9.8 percent.

The loan shall be payable in equal monthly installment for a term of three years.

The guidelines also prescribed that the outstanding balance of the previous loan shall be deducted from the net proceeds of the new loan. (rmn/jct/PIA7-Negros Oriental)