MANILA, Philippines—The Government Service Insurance System (GSIS) has disbursed over P110 billion in credit through its financial assistance loan program since its launch in May 2018, benefitting more than 271,000 government employees, according to the state pension fund.
More importantly, GSIS president and general manager Rolando Macasaet said on Tuesday (Jan. 19) that the program has been extended until Dec. 29, 2021.
In a statement, he said the pension fund also released P37 billion in loans to almost 90,000 members in 2020, despite the suspension of the credit window for six months at the height of the COVID-19 pandemic.
By transferring their loans from other lending institutions and consolidating these in the GSIS lending program, members benefit from reduced monthly amortization, lower interest rate of 6 percent per annum and longer payment term of six years.
They also enjoy higher take-home pay and their retirement benefits will be protected from loan deductions while helping GSIS improve its loan collection efficiency.
Aside from paying out the debts of members with other lending institutions, this facility has a “top up” feature that allows members to borrow the balance under loan ceiling for their personal needs.
To qualify, borrowers must be:
- Permanent government employees with a minimum of three years of paid premiums or appointed, elected, or nonpermanent government employees with at least 15 years of paid premiums
- With outstanding loans from lending institutions
- Without due and demandable GSIS loans.
- Not on leave without pay
- Without pending administrative or criminal cases except if the case is due to nonpayment of loans due to priorities given GSIS payments
- With a net take home pay not lower than P5,000
As a safety protocol, applicants may e-mail the requirements or submit them through drop boxes in designated GSIS branches. Their account officers may submit the requirements on their behalf via e-mail. Liaison officers may likewise submit their applications through drop boxes.
Attendance to financial literacy seminar, one of the requirements for the loan, may now be complied with by watching the video explainer posted on the GSIS’s website or by attending a virtual seminar via Zoom or Webex. Applicants may also participate in the seminar conducted by their human resources departments.
Edited by TSB
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