Calamity Loans: What Is It For and What Are Its Features and Alternatives

Understanding Calamity Loans: Features, Requirements and Alternatives

Typhoons and floods are the usual natural occurrence that haunts our country, especially during the rainy season. For us Filipinos, the adage “save up for the rainy days” means, in the literal sense, making sure one has enough money to recover should typhoons and other natural disasters strike us. However, as not all of us are graced with a sustainable income that allows us to save, the government and commercial banks have developed a financial solution to solve such problem – calamity loans.

What is a calamity loan for?

As its name implies, a calamity loan is for those disaster-stricken individuals and their families. The loan proceeds are meant to aid the borrower in rehabilitating, renovating or recovering properties lost because of natural disasters. For instance, one can apply for a Pag-IBIG housing loan to renovate or rebuild your home. One can also get quick cash from either SSS or GSIS.

What are the benefits borrowers can get from this loan type?

Considering that this loan type is meant for those who suffer losses, calamity loans are famous for their low-interest and flexible, yet short-term, loan.

  • Borrowers will enjoy low interest rate, which usually starts at 6% per annum.
  • Qualified applicants may pause or postpone their contribution for at least 3 months so that they can use their money for property acquisition or rebuild.
  • Loan maturity maxes at 3 years, enough for borrowers to get on their feet again.
  • Collateral properties may not be needed to establish your credibility as borrower.

Who are eligible to get this type of loan?

Of course, a calamity loan is only available to those who are living in regions, provinces or cities the National Disaster Risk Reduction and Management Counsel and the local government declared as a State of Calamity. Private sector employees can borrow from SSS and those employed in government-owned organizations may get a loan from GSIS. Pag- IBIG is the go-to provider for those who’re planning to renovate or rebuild their homes.

How best to apply to get a high chance of approval?

GSIS, SSS and Pag-IBIG prioritize the applications of those living in State of Calamity areas. Reviewers of those providers also demand applicants to submit substantial documents showing their residence and the type of damage they’re currently experiencing. This will help them determine the maximum amount you’re allowed to borrow.

What if you’re disaster-stricken but are still considered not eligible to take a loan?

Technically, the availability of calamity loans rests in the hands of the local government because it’s their call to declare whether an area is in a State of Calamity or not. For those who’re suffering from the adverse toll of natural disasters on their homes but are not in the government’s list, getting a personal loan is the next best option.

How can help? is the country’s largest partnership of lenders who can provide the public with financial assistance in times of natural disasters. We have partners who’re ever willing to lend money even if the applicant is not living in areas where the calamities struck the hardest. Those interested can start by following our 3-Step Online Application form available at

Written by Maricor Bunal

Mari writes for Loansolutions to help educate people in making informed-decisions on taking out loans and becoming responsible borrowers. Being the COO, she feels it is her social responsibility to do so. Learn more from her as she shares tips, advises and stories on finance. Also, she's fond of 9GAG, so you might read some random stuff over here.

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