GSIS extends financial assistance loan program until Dec. 29, 2021

State workers’ pension fund Government Service Insurance System (GSIS) on Tuesday announced it is extending until December 29, 2021 the GSIS Financial Assistance Loan (GFAL) program.

Since the program's launch in March 2018, the GSIS said it has disbursed P110 billion under the GFAL which benefitted more than 271,000 government employees.

“Nitong nakaraang 2020, kahit may pandemic at suspended nang anim na buwan ang GFAL, nakapag-release ang GSIS ng P37 billion kung saan 89,947 members ang nakinabang. At dahil gusto naming guminhawa ang buhay ng mas marami pa naming miyembro, itututuloy namin ang GFAL hanggang sa katapusan ng 2021,” GSIS president and general manager Rolando Macasaet said in a statement.

Under GFAL, members can transfer and consolidate their loans from other lenders to benefit from reduced monthly amortization, lower interest rate of 6% per annum and longer payment term of six years. 

Members 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, the GSIS said 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 GSIS noted that applicants must submit a duly accomplished application form; statement of account from the lender; ID of the lending institution’s authorized representative; and loan agreement, voucher, or other certified documents containing the loan details.  

They must also submit their previous month's payslip prior to the GFAL application, it said.

The payslip must be certified by the agency authorized officer (AAO). 

A clear photo of the borrower holding the accomplished form and unified multi-purpose identification (UMID) card is also required. 

In the absence of a UMID card, a photo of their two valid IDs (front and back) may be submitted.
 
As a safety protocol, applicants may email the requirements to their designated GSIS branch office or submit the same in drop boxes located in GSIS branch offices. 

Their AAO 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 GFAL, may now be complied with by watching the video explainer posted on the GSIS website (www.gsis.gov.ph) or by attending a virtual seminar via Zoom or Webex, according to the GSIS.

Loan applicants may also participate in the seminar conducted by their respective HR departments, it said.
 
The loan is released directly to the lending institution through check, the GSIS said.

The Top-Up Loan, meanwhile, is released to  borrowers either through check or e-credited to their UMID or eCard account. —Ted Cordero/KG, GMA News