Fiscal discipline is something that is often overlooked, but one that is so necessary to maintain a healthy, working institution.

With this view in mind, the GSIS implemented the Claims and Loans Interdependency Policy (CLIP) to ensure that members will not only prevent delinquency in their previous loan accounts, but also ensure the collection efficiency of the System.

Under the CLIP, the GSIS deducts the arrears incurred by members from their overdue loans from the proceeds of their new loan. It involves the collective suspension of a member’s loan privileges with outstanding accounts in default, except when the proceeds of a member’s new or renewed loan shall be used to settle his outstanding arrears.

The following accounts are included in its implementation:


  1. Consolidated Loan
  2. Cash Advance
  3. Emergency Loan
  4. Pension Loan


  1. Retirement
  2. Survivorship
  3. Funeral (for members with existing pension loan)
  4. All life insurance benefits

When you apply for a loan or for a benefit, the CLIP shall be applied as follows:

  1. Arrears on all your loan accounts shall be deducted from the proceeds of your new loan. Arrears are all amounts due the System, representing your loan repayments for prior due months, which have not been paid, including interest and penalty charges up to the current date.
  2. If you have a loan account in default, you shall not be allowed to avail of any GSIS loan, except when the proceeds of the new loan are applied to the payment of your arrears. A loan account in default is an account with at least 3 unpaid monthly repayments or the equivalent thereof.
  3. Your net loan proceeds, after relevant deductibles have been extracted, shall be used to pay arrears on your accounts in the following order of priority:
    1. Emergency loan
    2. Consolidated Loan
    3. Cash advance
    4. Pension loan

    If the actual outstanding balance of your previous loan is greater than your loanable amount, less the applicable deductions (excluding balance of previous loan) under the renewal loan, the application shall be denied.

    In availing insurance, retirement, survivorship, and funeral benefits:

  4. Your loan arrears, as well as the arrears on your personal share of the monthly contribution, shall be deducted from your maturity benefits that have become due and payable while you are in the service.
  5. The outstanding balance of your loan accounts, as well as arrears on your personal share of the monthly contribution, shall be deducted from your benefits (cash surrender value, separation, retirement, disability, death, funeral, and survivorship benefits) upon your separation from the service.