Manila: The Government Service Insurance System (GSIS) has set aside PHP12.62 million in emergency loans for its members and pensioners in Puerto Galera, Oriental Mindoro. This financial intervention comes in response to the municipality's declaration of a state of calamity, prompted by extended dry conditions and water shortages due to the ongoing El Ni±o phenomenon.

According to Philippines News Agency, GSIS announced that around 485 active members, as well as old-age and disability pensioners, can apply for the emergency loan program via the GSIS Touch mobile application until July 24. The initiative aims to provide essential financial support to those affected by the crisis.

Eligible active members residing or working in Puerto Galera can borrow up to PHP20,000 if they have no outstanding emergency loans. Meanwhile, those with existing loans can borrow up to PHP40,000 to clear previous balances, ensuring a net amount of PHP20,000 remains available.

The loan is structured to be repaid over 36 equal monthly installments with a 6 percent annual interest rate. It includes a loan redemption insurance, which cancels the loan in the event of the borrower's death, as long as payments are current. There is no processing fee for the loan.

To qualify, active members must not have GSIS loans overdue by more than six months, must not be on unpaid leave, should have paid at least three months of premiums in the last six months, have no unresolved administrative or criminal cases, and maintain a minimum net take-home pay of PHP5,000 after deductions. Old-age and disability pensioners can apply if they retain at least 25 percent of their monthly pension after loan deductions.

The state pension fund reiterated its commitment to supporting its members and pensioners in times of crisis and emphasized its dedication to providing accessible financial assistance to the affected communities.