The Government Service Insurance System (GSIS) has condoned more than P698 million in loan penalties as of January 6 through its Program for Restructuring and Repayment of Debts (PRRD), the pension fund said in a statement yesterday.
GSIS-PRRD is the pension fund’s one-time condonation and restructuring program that helps members who are already out of government service to settle their outstanding loan balances in full or in part.
“The program has eased the burden of members who worry about paying their outstanding loan balances that have incurred interest and surcharges over time,” Rolando Ledesma Macasaet, GSIS chairman and acting president and general manager, said.
The pension fund said under the GSIS-PRRD, the total restructured amount has reached P393.18 million, from 7,450 loan accounts.
Launched on December 18, 2018, the program has so far collected a total of P144.41 million from 2,630 members who opted to pay in full.
The 2,195 members who opted to pay on a three-year instalment basis are repaying their debts at 10 percent interest per annum.
Macasaet encouraged other qualified inactive members to avail of the program, as GSIS has extended the deadline for application until September 30, 2020.
GSIS-PRRD covers various service loans which include 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; Study Now, Pay Later and Fly PAL, Pay Later loans (did not avail of the condonation program in 2014); Education Assistance Loan (did not avail of EAL II); Stock Purchase Loan (did not avail of the condonation program in 2013); Policy Loan; and GSIS Financial Assistance Loan (for Department of Education personnel).
