GSIS launches loan condonation program

Inactive members of the Government Service Insurance System (GSIS) can now apply for a one-time loan condonation and restructuring program.

In a statement Tuesday, the state-run pension fund said that under the GSIS Program for Restructuring and Repayment of Debts (GSIS-PRRD), members who were no longer in government service can fully or partially settle outstanding loans starting Dec. 18.

“The GSIS wants to give its former members a relief in paying penalties as well as a chance to restructure their loans and pay the remaining balance through installment,” GSIS president and general manager Jesus Clint Aranas said.

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

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

These service loans were included in GSIS-PRRD: 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 avail of the condonation program in 2014, education assistance loan that did not avail of EAL 2, stock purchase loan that did not avail of the condonation program in 2013, policy loan, GSIS financial assistance loan to Department of Education personnel, as well as study-now, pay-later and fly PAL.

However, pensioners and housing loans will not be covered by GSIS-PRRD.

For housing loans, the condonation program is ongoing until Dec. 31 to more than 15,000 borrowers with unpaid obligations. —BEN O. DE VERA