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GSIS extends application for loan and repayment program

The Government Service Insurance System (GSIS) has extended the deadline of the application for the GSIS Financial Assistance Loan (GFAL) to July 26, GSIS Program for Restructuring and Repayment of Debts (GSIS-PRRD) to Sept. 30, and calamity loan for earthquake victims to Feb. 2.

GSIS-Davao general manager Deity Manampan said during the Kapehan sa Dabaw yesterday that they decided to extend the application to increase the number of beneficiaries. As of 2019, the agency was able to grant P68 billion to 165,929 government employees nationwide, which was P2 billion short of their target for the year.

On the other hand, GSIS-Davao granted P1.8 billion in loans to 4,319 government employees, reaching their quota of P1.6 billion, and ranking 10th nationwide.

Manampan said plenty of their members have not applied for loans yet, but remain interested. So, they plan to enter into a memorandum of agreement with other government agencies and local government units to make it happen.

The GFAL is a program that enables GSIS members to transfer their outstanding loan balance from lending companies, especially the ones with high interest, to GSIS where the interest is low and the payment term is longer. It gives government workers a higher take-home pay, protects their future retirement benefit, and prevents them from getting buried in debt.

The maximum loan amount is P500,000 and payable for six years with a 6% interest rate per annum. Borrowers must be permanent government employees with outstanding loans from any lending institutions accredited by GSIS, have at least three years of service, no due and demandable loan account from GSIS, must not be on leave without pay during time of application, a take-home pay of at least P5,000, and no pending administrative case or criminal charge.

The application deadline for the calamity loan for earthquake victims was extended, as well, due to the Dec. 15, 2019 earthquake. Pensioners can get a loan of up to P20,000 to be paid within two years with a 6% interest per annum.

Meanwhile, the GSIS-PRRD is a program for members who are already out of government service to settle their outstanding loan balances in full or on an installment basis. It gives them more time to restructure their loans at a 10% interest per annum. It covers various service loans such as Salary Loan, Emergency Loan Assistance, etc.

Lastly, Manampan also announces that the GSIS office is open on Saturday for GFAL transactions, such as evaluation and releasing of checks.

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