These Are The GSIS And SSS Loans For The Victims Of The Recent Typhoons
Members of the Government Service Insurance System (GSIS) and the Social Security System (SSS) who were affected by the most recent typhoons can now apply for loans from the two agencies.
The two government agencies rolled out an announcement after the typhoon-ravaged some parts of the country leaving behind over ₱1 billion in damages. If you or you know someone who is a victim of the most recent typhoons – Rolly and Ulysses – you can take comfort with the fact that help is just around the corner with SSS and GSIS’s relief assistance programs.
GSIS loan for typhoon victims
The GSIS said in their advisory that members and pensioners can borrow up to ₱20,000 under the Emergency Loan program payable in 36 equal monthly installments at a 6% interest rate.
Who are qualified to apply for the GSIS typhoon assistance loan?
Affected members who want to apply must meet the following criteria:
- Members must be in active services and not on leave of absence without pay.
- Must have no pending administrative or criminal case.
- The member’s net monthly take-home pay should be over ₱5,000 after all obligations are deducted.
Members that have due and demandable loan accounts are also allowed to renew their previous emergency loan from a different calamity excluded under the COVID-19 Emergency Loan Program.
SSS loan assistance to typhoon victims
On the other hand, in a separate advisory, the SSS announced that three programs will be opened for typhoon-affected members and pensioners starting November 27, 2020, which are the following loan programs:
1. Calamity Loan Assistance Program (CLAP)
With this program, SSS members can apply for a loan equivalent to the average of their last 12 monthly salary credits rounder up to the nearest thousand or the amount they applied for, whichever is lower.
This loan is payable for two years in equal monthly installments with a 10% interest rate per annum, and a 1% penalty for late payments.
2. Three-month Advance Pension
The loan will be take off 3 months of your pension; the amount however will depend on your contribution. While the figures may vary on your monthly premium, the computation is the same. You can refer to SSS pension explainer for more details.
The three-month advance pension is for those residing in NDRRMC-declared calamity areas due to the three recent typhoons, excluding those who have existing loans under the Pension Loan Program.
The payment will be deducted from your pension upon retirement.
3. Direct House Repair and Improvement Loan
This loan grants funds to members who need to repair or improve their homes. Below is a brief explainer of this loan program from SSS according to its website.
- The appraised value of the collateral of at least 70% but not to exceed 90%,
- Borrower’s capacity to pay,
- Actual needs of the borrower based on the contract to sell/scope of work and bill of materials evaluated by the SSS.
The maximum loanable amount is ₱1,000,000.00 with an annual interest rate of 8% for loans P450,000 and below, and 9% for that above ₱450,000.
Your payment term must be a multiple of five years with a maximum of 20 years, plus a six-month moratorium. The loan term must also not exceed the economic house of the life as determined by the SSS, and the age of the applicant must not exceed 65 years at the end of the term.
SSS typhoon assistance loan requirement
To qualify, members must have or meet the following:
- An online SSS account.
- At least 36 monthly contributions.
- A resident of a calamity area damaged by typhoons Rolly (international name: Goni), Quinta, and Ulysses (international name: Vamco).
The GSIS is a social insurance institution that provides a defined benefit scheme under the law, to insures its members against the occurrence of certain contingencies in exchange for their monthly premium contributions. Meanwhile, the SSS is mandated to promote social justice and provide protection to members and families against the hazards of disability, sickness, maternity, old age, death, and other contingencies resulting in loss of income or financial burden.