The Government Service Insurance System (GSIS) has disbursed more than P110 billion worth of credit under 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 that the program has been extended until Dec. 29.
In a statement, he said the pension fund also released P37 billion in loans for almost 90,000 members in 2020, despite the suspension of the credit window for six months at the height of the coronavirus pandemic.By transferring their loans from other lending institutions and consolidating these under the GSIS lending program, members benefit from reduced monthly amortization, lower interest rate of 6 percent a year and longer repayment 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 to other lending institutions, this facility has a “top up” feature that allows members to borrow the balance under the 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; have outstanding loans from lending institutions, and have no due and demandable GSIS loan. In addition, they should not be on leave without pay; have no pending administrative or criminal case except if the case is due to loan nonpayment due to the prioritization of GSIS payments, and have a net take-home pay that is not lower than the P5,000 requirement under the General Appropriations Act.
As a safety protocol, applicants may email the requirements or submit them through drop boxes in designated GSIS branches. Their account officers may submit the requirements on their behalf via email. Liaison officers may likewise submit their application through drop boxes.
Attendance to the financial literacy seminar, one of the requirements for the loan, may now be complied with by watching the video explainer posted on the GSIS’ website or by attending a virtual seminar via Zoom or Webex. Applicants may also participate in the seminar conducted by their respective human resources departments. INQ