The Government Service Insurance System (GSIS) reported on Tuesday that it had disbursed P110 billion under its GSIS Financial Assistance Loan (GFAL) program since its introduction in May 2018.
In a statement, GSIS President and General Manager Rolando Ledesma Macasaet said that of the amount, P37 million were released last year despite the program’s suspension for six months, benefiting 89,947 of the agency’s members.
He also said the GFAL would be extended until December 29 “dahil gusto naming guminhawa ang buhay ng mas marami pa naming miyembro (because we want more of our members to have a comfortable life).”
GSIS said that by transferring their loans from other lending institutions and consolidating these under GFAL, members benefit from reduced monthly amortization, lower interest rate of 6 percent per annum and longer payment term of six years.
They also have higher take-home pay and protected retirement benefits from loan deductions while helping GSIS improve its loan collection efficiency, it added.
GFAL also has a top-up loan feature that allows members to borrow the remaining loan amount for their personal needs.
Qualified borrowers must be permanent state 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.
They should also 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.