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GSIS inks pact with Sandiganbayan, allots Php98M in loan transfer for employees
Date Posted: March 3, 2020

The Government Service Insurance System (GSIS) allotted Php98 million for a loan transfer facility that will benefit Sandiganbayan’s qualified employees.

This was after Presiding Justice Amparo Cabotaje-Tang signed a memorandum of agreement with GSIS, represented by Executive Vice President Nora Malubay of the Core Business Sector, last February 6 in Batasan Road, Quezon City, for the implementation of the GSIS Financial Assistance Loan (GFAL) in the special court.

“GFAL is aimed at shielding GSIS members from loan sharks and “5-6” lenders. With GFAL’s longer payment term and lower interest rate and amortization, members who avail of it stand to have higher net pay and eventually protect their retirement and other benefits from being eaten up by unpaid loans,” GSIS Acting President and General Manager Rolando Ledesma Macasaet said.

Under GFAL, qualified members may consolidate up to Php500,000 of their outstanding loan balance from other lending institutions and transfer them to GSIS. Members whose outstanding loan balance is less than Php500,000 may opt to borrow the remaining amount through the Top-Up Loan.

The proceeds of GFAL will be paid directly to the lending institution, while the Top-Up Loan will be released to the member. GFAL amortizations will be automatically deducted from members’ salaries.

To qualify for GFAL, applicants must be permanent government employees with outstanding loan from lending institutions, government banks, or cooperatives, or other instrumentalities accredited or recognized by their agency; have paid GSIS premiums for at least three years; and have no due and demandable loan account with GSIS.

In addition, they should not be on leave without pay; have a net take-home pay of not lower than Php5,000 after deduction of monthly obligations; and have no pending administrative or criminal case. However, if the case was filed by a lending institution due to nonpayment of their loan as a result of the prioritization of GSIS deductions, such borrowers are still eligible to apply for GFAL.

All GSIS offices nationwide are open every Saturday for GFAL transactions, including the conduct of a financial literacy seminar, which is a requirement prior to the approval of the loan. The deadline for submission of GFAL application is July 26, 2020.

GSIS has disbursed more than Php86 billion in GFAL since its launch in May 2018.

Interested parties may visit the GSIS website, www.gsis.gov.ph or Facebook account, @gsis.ph; email gsiscares@gsis.gov.ph; or call the GSIS Contact Center at 8847-4747, 1-800-8-847-4747 (for Globe and TM subscribers), or 1-800-10-847-4747 (for Smart, Sun, and Talk ‘n Text subscribers).