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State Pension Fund Extends Emergency Loan

The Government Service Insurance System (GSIS) has made its COVID-19 emergency loan program available again to its members and pensioners after it was stopped on August 12. The reopening of the loan program will start from September 28 until December 27 in accordance with the extension of the state of calamity decreed by President Rodrigo Duterte because of the Covid-19 pandemic. This is in accordance with Proclamation No. 1021.

From a statement by Rolando Ledesma Macasaet, the President and General Manager of GSIS, there is an expected 700,000 members to submit their emergency loan applications. Three months will be enough time for all those in need to apply for financial assistance.

GSIS is preparing resources to assist both members and pensioners who need financial aid. From the 43.01 billion pesos loan facility allotment by the agency, it has already released 18 billion pesos to about 600,000 qualified beneficiaries.

This program will help those borrowers who have existing emergency loan online Philippines, again get up to 40,000 pesos, so that they can repay their previous loan and still be eligible to receive 20,000 pesos again. At the same time, those people who do not have an existing emergency loan, allowed to take 20,000 pesos. At the same time, those participants who have already taken emergency credit Covid-19, no longer have the right to apply for such an application.

The following GSIs members are also eligible for the program:

  • continue to work
  • are not on vacation without pay
  • have no administrative or criminal offences
  • have net earnings at home of less than 5,000 pesos after tax

GSIS now allows members who have arrears of more than six months to renew their previous emergency loan from a different calamity excluding the COVID-19 emergency loan program. Also if borrowers have only three months of insurance premiums paid, instead of six, they are also entitled to credit.

The agency emphasized that every emergency loan application by its members will still be subjected to the approval of the members’ employer. Also, old-age and disability pensioners are qualified to apply if their resulting net monthly take-home pension after loan availment is at least 25% of their basic monthly pension.

If borrowers have no internet access at home members, not including pensioners, may also choose to file their loan application through the GSIS Wireless Automated Processing System (GWAPS) kiosks located in all GSIS branches, Department of Education offices, provincial capitols, city halls, Robinsons Malls, and selected SM Supermalls. After the application for the loan has been approved, the amount will be directly credited to the borrower’s Unified Multi-Purpose ID (UMID) card or temporary eCard account.

Other help programs from GSIS

GSIS has other programs for its members. For example, a credit program to buy a computer is aimed at helping workers who need a computer for their work. To do this, they are given a loan of 30,000 pesos for 3 years at 6%. Credit can also be used by Members of the program can use this money for their children or relatives who need gadgets for education.

Also GSIS gives a loan for education for 10 years. The program has a grace period of 5 years, and payment will begin only in the sixth year after receiving the loan. It is expected that GSIS will implement it during this month. It will help GSIS members to pay for the education of their children. The terms of the loan are designed so that parents are required to pay even after their children finish their studies and find work.

Members who are qualified to avail of this loan are those who are already in government service for at least 15 years and have children aged 16-18 years old. These restrictions were made so that the funds of GSIS will be protected as it helps its members. Moreover, Macasaet stated that GSIS’ fund life is among the safest in the world, at around 30 years, there is a need to remain cautious to safeguard the welfare of the members, pensioners, and the beneficiaries of the members.

In addition, GSIS has started to reimplement the Financial Assistance Loan Program, which allows members to transfer their loans up to 500,000 pesos from other institutions. The annual interest rate on this loan is only 6%, which is well below 30% for most banks. This credit program was suspended in March last year, but now it is in force again.

It has been reported that GSIS has already released nearly 100 billion pesos for this program and this has benefited around 200,000 government workers. Borrowers are also required to attend a financial education seminar before they can avail of the GFAL program benefits. This seminar will give GSIS members insights on what to do with their money and prevent previous instances wherein members fail to properly use their funds and were burdened by large amounts of loans. This time, the seminar will be conducted online.

Macasaet said that GSIS will continue to improve its system to be able to work online and provide remotely its products and services to members.

Non-government loan in a difficult situation

If you do not fall under any of the government programs and you need money urgently for emergency expenses, you can borrow from online lender. Unlike loans from banks and other financial institutions, Robocash is less bureaucratic and provides fast and easy loans to Filipino citizens between ages 21 to 70 years old. It will on require a valid government ID and a functioning mobile number. It is also necessary that the borrower has a small but stable income, both official and unofficial. Robocash requirements are simple and fit almost any Filipino. Clients can borrow from 1,000 to 25,000 pesos payable in 7-30 days. It should be noted that the first loan is given at 0%, which is very convenient. You will return exactly as much as you took. Robocash.ph loans must be returned on time and applying for such loans can be used only in extreme cases.