Details about the GSIS Enhanced Emergency Loan Monthly Amortization Based on Loan Amount
GSIS ENHANCED EMERGENCY LOAN – Here is a guide for members on the monthly amortization based on the amount borrowed.
One of the main advantages in maintaining an active and updated account to the Government Service Insurance System is that you have solutions that you can turn to in times of need. More popularly called GSIS, it offers several types of benefits and loans for its members.
One of the loans offered by the state-run social insurance agency which is one of the giants in its field is the GSIS Enhanced Emergency Loan offer. It was designed as a financial solution for the qualified members who are living or working in areas placed under a state of calamity.
The loanable amounts under the GSIS Enhanced Emergency Loan offer vary depending on the loan account status of the member. A member who has no existing emergency loan may borrow Php 20,000 while the member who has an existing loan of the same type may borrow as much as Php 40,000. The balance of the existing loan will be deducted from the loan proceeds.
The amount borrowed is payable within three (3) to 36 months in equal monthly installments. It is subject to a 6% interest rate that is computed in advance.
With regards to the monthly amortization under the GSIS Enhanced Emergency Loan, it is dependent on the amount borrowed. According to the state-run social insurance agency, if the amount borrowed was Php 20,000, the monthly amortization is Php 655.56. If the borrowed amount was Php 40,000, the monthly amortization is Php 1,311.11.
The repayment is done through payroll deductions. Thus, the Government Service Insurance System requires the certification of the employer to confirm that the member…
- is still in active service
- has no pending criminal or administrative case prior to the processing of the application
- not on a leave of absence without pay
- monthly amortization will be deducted by the employer from the salary of the member-borrower and remitted to the government social insurance institution within the 10th of the month following the first due date
In the case of members who have been separated from service, the employer must obtained a clearance from the GSIS. It must be done before the releasing of the loan proceeds. There is an easy application process for the GSIS Enhanced Emergency Loan offer for members residing or working in calamity-stricken areas.