Capitol, CSU sign up for GSIS’ new loan assistance
posted 19-Oct-2019  ·  
722 views  ·   0 comments  ·  

Aside from public school teachers, employees of the provincial government and the Catanduanes State University (CSU) can now avail of the Government Service Insurance System’s Financial Assistance Loan (GFAL) II.

Last Sept. 24, 2019, Acting Governor Shirley Abundo and CSU President Minerva Morales separate signed agreements with GSIS Legazpi branch manager Levi Olivar, expanding GFAL II to government employees on the island.

According to the GSIS website, the GFAL was originally offered to teachers of the Department of Education (DepEd) until it was expanded in July 2019 to be offered to all government employees.

“Then nitong June… nag-request din ang ibang agency. Bakit daw DepEd lang ang binibigyan? Sila may mga loans rin daw sa ibang government-private lending. Kaya nagkaroon ng GFAL 2. Irere-finance natin ‘yung mga loan nila sa Landbank, DBP, Legaspi Saving, PLDC, ARDCI…” GSIS Virac field office head Johnson Dating said.

Dating explained that employees could now borrow up to Php 500,000 from the GSIS to finance their loans from private lending institutions.

According to documents from the GSIS, only employees with “Active Permanent Status, with at least 3 years of paid premiums, [n]o pending administrative and/or criminal charge, [n]ot on leave without pay (LWOP) at the time of availment, [h]as an outstanding loan from the lending institution accredited by his or her agency,” and “[h]as no Due and Demandable loan account/s with the GSIS.”

At the capitol, the memorandum was signed at the governor’s office in the presence of Dating and Acting Vice-Governor Lorenzo T. Templonuevo Jr.

Under GFAL, GSIS members may transfer their loan of up to Php500,000, to the pension fund from lending institutions, such as government banks and cooperatives, that are duly accredited by their agencies.

The loan, which has a lower interest rate of six percent per annum and longer repayment period of six years, will be directly paid to the lending institutions.

“However, should a member’s total loan with the lending institution be below Php500,000, the balance may be applied for as Top-Up Loan, with the proceeds directly payable to the borrowers through check,” GSIS Chairman and concurrent Officer in Charge Rolando Ledesma Macasaet said in a recent statement.

“We introduced the Top-Up Loan to help GFAL borrowers augment their funds to defray for their other needs. Instead of running to private lenders for a fresh loan, members are instead advised to optimize their GFAL and take advantage of the lower rate and longer payment terms,” Macasaet added.

GFAL, which was initially offered to public school teachers and employees of the Department of Education (DepEd) last May 2018, aims to improve their financial capacity and help them refinance their outstanding loans with lending institutions.

In July 2019, GSIS expanded its GFAL coverage to non-DepEd agencies and local government units due to their strong clamor. “We heeded their demand recognizing that all GSIS members should enjoy the same privileges for the sake of equality and fairness.”

The pension fund chief also pointed out that GFAL is in response to the call of President Rodrigo Duterte to help improve the financial situation of teachers and other government employees who fall prey to money lending schemes, such as ‘5-6’, which are often tied with hefty double digit interest rates.

Agencies should first enter into a memorandum of agreement with GSIS to enable their employees to avail themselves of GFAL. Qualified to apply for the loan program are active regular or special members who have permanent employment status, have no pending administrative case or criminal charge, and are not on leave without pay.

They should also have at least three years of periods with paid premiums, have no due and demandable loan account with GSIS, and have a take-home pay not lower than Php5,000, which is required under the General Appropriations Act after all monthly obligations have been deducted.

Borrowers may apply for GFAL and Top-Up Loan only once.

new to
connect with us to leave a comment.
connect thru
home home album photo album blogs blogs