The Government Service Insurance System (GSIS) has disbursed over P110 billion under the GSIS Financial Assistance Loan (GFAL) program since its launch in May 2018, the pension fund said yesterday, benefitting more than 271,000 government employees.
GSIS also said in its statement it is extending the program until December 29, 2021.
“Last year, even with the pandemic and even as we suspended the GFAL for six months, we were able to release P37 billion, which has benefitted 89,947 members,” Rolando Macasaet, GSIS president and general manager, said.
The pension fund said by transferring their loans from other lending institutions and consolidating these under GFAL, GSIS members will benefit from reduced monthly amortization, lower interest rate of 6 percent per annum and longer payment term of six years.
They will 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, GFAL has the Top-Up Loan feature that allows members to borrow the remaining loan amount for their personal needs.
If a member’s GFAL loan, for instance, is P300,000, he or she may borrow the remaining P200,000 under the Top-Up Loan.
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.
The loan is released directly to the lending institution through check. The Top-Up Loan is released to borrowers either through check or e-credited to their UMID or eCard account.