GSIS approves loan condonation program

The Government Service Insurance System will offer a one-time loan condonation and restructuring to former members who still owe the state-run pension fund.

In a statement late Friday, GSIS president and general manager Jesus Clint O. Aranas said the so-called GSIS Program for Restructuring and Repayment of Debts (GSIS-PRRD) would soon be launched and opened to “inactive members with service loans which have been left unsettled after separation from service.”

“Through PRRD, the GSIS intends to give its former members a relief in the payment of penalties as well as a chance to restructure their loans and pay the remaining balance through installment,” Aranas explained.

Under the GSIS-PRRD, the pension fund will condone all unpaid penalties slapped on former members’ outstanding balances, he said.

As for the remaining balances, these will be restructured with a 10-percent interest, compounded annually, the GSIS chief added.

Aranas said the service loans to be covered by the GSIS-PRRD were salary loan, restructured salary loan, enhanced salary loan, emergency loan assistance, summer one-month salary loan, member’s cash advance/eCard cash advance/eCard plus cash advance, conso-loan, emergency loan, home emergency loan program (HELP), pay-later loans that did not make use of the condonation program in 2014, old education assistance loan, stock purchase loan that did not use the condonation program in 2013, policy loan, GSIS financial assistance loan to Department of Education personnel as well as study now, pay later obligations.

However, pensioners’ loans as well as housing loan will not be covered by GSIS-PRRD.

As for housing loans, Aranas noted the condonation program ongoing until Dec. 31 being offered to more than 15,000 borrowers with unpaid obligations.