GOVERNMENT SERVICE INSURANCE SYSTEM Financial Center, Roxas Blvd Pasay City GSIS Memorandum Circular No._QO( Series of 2013 To HEADS OF CONSTITUTIONAL BODIES; BUREAUS AND AGENCIES OF THE NATIONAL GOVERNMENT; LOCAL GOVERNMENT UNITS; GOVERNMENT OWNED OR CONTROLLED CORPORATIONS; STATE UNIVERSITIES AND COLLEGES; AND ALL OTHERS CONCERNED Subject. GRANT OF HOME EMERGENCY LOAN PROGRAM (HELP) TO GSIS MEMBERS AFFECTED BY TYPHOON YOLANDA Presidential Decree No. 682 issued on November 11, 2013 declared the whole nation under "State of Calamity’, President Aquino directed all concerned agencies to extend necessary support to the areas affected by Typhoon Yolanda and to be active partners in rebuilding the homes and livelihood of the typhoon and flood victims. ‘The GSIS immediately responded to this call by offering the loan assistance package for active members and pensioners who were affected by Typhoon Yolanda, approved under Board Resolution 120 dated November 12, 2013, However, despite the GSIS-approved loan package and other relief operations that are being provided by various sectors to address the pressing needs for food, clothing and medicines, most of the typhoon victims are stil wanting in terms of financial support to rebuild their houses. In line with the framework of the government to speed up the process of enabling the people to rebuild their homes and resume productive lvelinood and employment activities in communities, the GSIS approved the grant of a one-time special loan program, This special loan program named Home Emergency Loan Program (HELP) shall be made available to all GSIS active members who are working and/or residing in the worst hit calamity areas which were identified in the granting the emergency loans to stakeholders affected by Typhoon Yolanda HELP is over and above the other existing loan programs of the GSIS, but shall only be availed once and shall not be subjected to renewal To ensure that the qualified GSIS members will not be saddled by excessive loan availments from other financial or lending institutions, and at the same time ensure collection of loan amortizations, the granting of this special foan program shall strictly observe the net take-home pay prescribed under the General Appropriations Act (GAA) POLICY GUIDELINES ‘A. Qualified Loan Borrowers ‘Active members identified as working or residing in the worst hit calamity areas per GSIS records as of November 15, 2013, including employees of suspended agencies, shall be qualified to avail of the GSIS HELP. List of worst hit areas is listed in the attached Annex A. B. Application and Availment Period Application forms shall be accepted at any GSIS office nationwide. The special loan program shall be offered from January 02, 2014 to March 31, 2014. Acceptance of applications will be untii31 March 2014 only.©. Lean Amount The maximum loan amount for is lan program sl be based on the member's total length of service (TLS), as follows: Tis | asim toanaie Aouad] Tess than yeas ean a0 0 ya ee Bs 00 000.00 than 10 years | {0 years snd above | Faso} The loanable amount tat canbe ava of shal bein multe of Ten Thousané enor (10000), ie. P10,006.00, P2000 00, P20,000.00,P50,900.00 and so on, but sat exons 240 0009 D. Interest Rate and Loan Term The interest rte shall be six percent (6) compounded analy based on 2 dng balanos” aston ofa month considered one (1) mon The term ofthe loans ten 10) years Redemption insurance The redemption insurance (Rt) shal fam pat of the manthy amortzation: premium fate le 038 por Pp 00000 F. Total Monthly Amortization Below the monthly amortization fr varous lan amounts (mtiples of 10,000 with Ge merst paca payable inten (10) eas. yan Tey Aten Leona | iy meteor | Ts ant | — Pin Sit_|RlPrenum | Taal Pind [RiPemen | Ta T1022] 380] _ 11402 “Tae 4180] 2 g 7.88 ge — Sale [eat — so i gy] Haw — Slee aon | —sipt pogo) tu Sol see lena] ete eo — ares) | tp e0| te boo — rat Sor tone — see Signer — an See) ante BSB Sionan| — ee Tose, tate iss 119369 uae Heat) Somes Sis 6. First Due Month Monty amertzaton snl commence on Juy 2014, andthe 1st monthly amertzaon must be rered fo the GSI on or bette Augul 10,2014; Monty arotssons isl be pld every TO ofthe month terest ul he oan ly Pa WL. Nt Proceeds Only the processing fee, computed at 1% of the gross loan amount, shall be deducted from the loan amount,In Default Account and Penalty Charges Failure of the borrower to pay six (6) monthly instalments shall consider him/her in default. The redemption insurance coverage shall be automatically lapsed or cancelled once the loan is declared in default. In such case, the outstanding balance of the loan shall be due and payable without need of demand or further notice, all of which the borrower expressly waives. On the other hand, as a matter of GSIS. collection and remedial policies, arrearages shall be deducted from other loans which the member may avail ‘An account which incurs arrearages equivalent to more than six (6) months of ‘amortization shall become due and demandable and shall be charged an interest rate (of 12% per annum compounded monthly (pacm), Application of Redemption Insurance Benefit, It the member dies and the loan is up-to-date, the loan shall be deemed fully paid by Virtue of the redemption insurance coverage, In case the loan is in arrears, only the theoretical balance of the loan shall be considered fully paid while the arrearages shall be deducted from whatever benefits that may be due the deceased ‘The redemption insurance coverage shall be deemed lapsed or cancelled once the loan is declared in default. In such case, the outstanding balance and unpaid interests immediately prior to death shall be due and demandable and shall be deducted from whatever benefits that may be due the deceased ‘The insurance coverage shall automatically terminate once the borrower pays the loan in full or upon expiration of the term of the loan, whichever comes first, . Compulsory Pre-Termination ‘The loan shall be due and demandable upon the resignation, retirement, or ‘separation from service of the member. In case of retirement, the outstanding principal and unpaid interests shall be collected in accordance with PPG No. 209-11 [Choice of Loan Amortization Schedule for Pensioners or CLASP]. ‘The loan may be pre-terminated without penalties by paying the outstanding balance of the loan before the end of the loan term. |. Cancellation Once the loan is approved and the loan proceeds have been credited in the GSIS eCard account, the member has no more option to cancel the loan but only to pre- terminate it without any right to demand for reimbursements of the fees deducted (i.e processing fee) Recovery of Amount/s Credited in the GSIS eCard ‘The GSIS shall have the right to recover by any legal means possible, any amount in the eCard account credited thereon as a resul of fraud, misrepresentation of error on ‘account anising from any transaction which the member may have with the GSIS.©. Refund of Overpayments ‘The refund of loan overpayments shall be facilitated by the GSIS in accordance with the existing policy guidelines on the treatment of excess loan payments, 2 ROBERT G. VERGBRA Presigent & General Manager 27 December 2013Annex A List of Cites/Municipalties Considered Worst Hit by Typhoon Yolanda as of December 4, 2013 No. PROVINCE crv MuiPALTY No PROVINCE rr MUNCRLITY 7 aa TS eo SOON, 7 [aan BALETE [a I SAN RIEHL aca BATAN fe —[towo SUN a ana BACH ‘7 [1010 SaNATE 5 [ana URDALAS eff bouo BAROTAC VED [aKa BANGA. [woo INGA 7 [aca BURUANSR a GIT CARLES a TEAR 7 -nouo DUEAAS [acc KALI 7 —[1ouo Passi co co Lez0, 7a | oun SAN ENRIQUE [ac AKATO Te [_erre ALLER 1 | aa ALMA 75—[ ETE BURAUEN 1s [ac NEW WASHINGTON 7e__| eve AGAMA 1 ac NOVANCTA T_| eT DULAG 15 _—[ AX TANGALAN Te erie ISABEL 16 ana TABAS 7a | levi TARO, | aNTOuE, eaRaATE al [-levre uth 1s -ANTIOUE CULASL [tere KANANGE 1a ANTOVE, SebAST [ene ARAL Z| aMTQUE, TBA ene RCT Zi [ANTONE LAUA AT | ere WATAG-O8 | anrioue: USERTAD eee AYORR | aNTOUE: PANO 6 ere ERIDA 24 ANTONE: BUGASONE ere ‘ogc oT Z| ANTONE, CALUYA ere PALO, [cea ‘SUARTERD. 39 [ere PALONPOR, Z| re. 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Tia [ EASTER SAAR ‘GPORLOS sr [ces TUDELA Tat [ EASTER SAI LAN =| LoL TAY 121 [ EASTER SAVAR TARA. 52 [oto BAAS 122 [EASTER SHAR, MERCEDES, «0 [Lolo BATAD 123—[_ EASTER SAVER ‘GUNAPORI sito CONCEPEIN, oa [EASTER SAI SALCEDO [40 STANCE, 125 [ASTER SAAS. HERNAN Loto: LEERY 125 [EASTER SMe ALANS