Close

Not a member yet? Register now and get started.

lock and key

Sign in to your account.

Account Login

Forgot your password?

Pres. Duterte witnesses signing of GSIS, DepEd pact to finance teachers’ loans from private lenders

Date Posted: April 17, 2018


President Rodrigo Roa Duterte is flanked by (from left) Department of Education (DepEd) Undersecretary Victoria Catibog, DepEd Secretary Leonor Briones, President and General Manager Jesus Clint Aranas and GSIS Senior Vice President for NCR Operations Nora Malubay-Saludares after the signing of agreement to extend a financial assistance loan for DepEd personnel.

President Rodrigo Duterte witnessed last April 16 the signing of a project of the Government Service Insurance System (GSIS) that will facilitate the payment of loans of teachers and other personnel of the Department of Education (DepEd) from private lending institutions (PLIs) through a loan facility from GSIS.

GSIS President and General Manager Jesus Clint Aranas and DepEd Secretary Leonor Briones signed the agreement in Malacañang.

“We don’t want DepEd employees to sink deep into debt, so we have proposed a better way for them to manage their finances. The borrowers will pay back the loan to GSIS at easy and affordable terms,” Aranas said.

He added that having several loans weakens the employees’ capability to settle their obligations, which include payment of their loans to GSIS.

“Payment of their GSIS loans usually take a back seat. If the practice continues, their future GSIS benefits are bound to suffer,” Aranas added.

The project likewise reinforces the issuance of DepEd Order (DO) No. 38 on 31 July 2017 and DO No. 55 on 26 October 2017 reiterating that DepEd shall accord first preference to GSIS, Home Development Mutual Fund (PAG-IBIG), BIR, and PhilHealth in deducting payments from the salaries of its personnel.

Active regular members with outstanding loans from DepEd-accredited PLIs may apply for the GSIS Financial Assistance Loan (GFAL) if they are permanent in employment status; have paid premiums for the last three years; are not on leave of absence without pay; have no due and demandable GSIS loan; and have no pending administrative or criminal case.

If a PLI has filed a case against members for nonpayment of obligations after GSIS loan payments have been prioritized by virtue of DO Nos. 38 and 55, such members are still eligible to apply for GFAL.

Qualified members may borrow up to Php500,000, provided their take-home pay will not go lower than Php5,000 after their monthly obligations have been deducted.

The loan is payable in monthly instalments for six years at 6 percent interest rate per annum computed in advance. Payments will be automatically deducted from the borrower’s salary.

The application form and requirements will be made available to DepEd agencies where GFAL will be piloted by the first week of May this year.

Interested parties who have inquiries 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 847-4747 or 1-800-8-847-4747 (for Globe [free with minimum Php8.00 load] and TM subscribers) or 1-800-10-847-4747 (for Smart, Sun, and Talk ’N Text subscribers; Php8.00/call).